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18 Mar 2014
Flash: Asian currencies immune to higher USD/CNH - Societe Generale
FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale, notes Asian currencies ignored the recent USD/CNH appreciation...
Key Quotes
"Another day of rising USD/CNH has had absolutely no impact on Asian currencies or, therefore, on global sentiment. All the talk is of barriers being triggered above 6.20, so perhaps there will be more focus in due course."
"I still don't understand the consensus view that once the PBoC has succeeded in squeezing out speculative interest in the market, they will allow a gradual appreciation of the CNY to resume, but for now there is no contagion to anywhere else. The AUD is most sensitive among the major currencies but with the RBA playing a very straight bat in its policy minutes (housing strength offsets labour market weakness and rates are on hold for ever), it's not exactly moving fast."
"I remain a long-term bar of AUD, NZD and CAD, but that's not going to do me much good today. Best idea is to receive 1y/1y AUD and pay 1y/1y USD or similar trades."
Key Quotes
"Another day of rising USD/CNH has had absolutely no impact on Asian currencies or, therefore, on global sentiment. All the talk is of barriers being triggered above 6.20, so perhaps there will be more focus in due course."
"I still don't understand the consensus view that once the PBoC has succeeded in squeezing out speculative interest in the market, they will allow a gradual appreciation of the CNY to resume, but for now there is no contagion to anywhere else. The AUD is most sensitive among the major currencies but with the RBA playing a very straight bat in its policy minutes (housing strength offsets labour market weakness and rates are on hold for ever), it's not exactly moving fast."
"I remain a long-term bar of AUD, NZD and CAD, but that's not going to do me much good today. Best idea is to receive 1y/1y AUD and pay 1y/1y USD or similar trades."