Monday, 17 September 2012

RBA Rhetoric Poses Risks For AUD/USD-FXCM


The AUD/USD reached a monthly high of 1.0624 last week but could come under pressure this week as the Reserve Bank of Australia is showing greater willingness to ease monetary policy further, says David Song, FXCM currency analyst. He says this week's RBA minutes are the biggest event risk for the Aussie and the central bank's rhetoric could reduce the appeal of the currency. He adds, the RBA could take this additional step at the Oct 2 meeting as China - Australia's largest trading partner - faces a growing threat for a hard landing. The AUD/USD is now at 1.0535.

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