Speculative Bets On The Aussie To Rise?

Lior Alkalay - INO.com Contributor - Forex

Ever since China's stock woes escalated it seems all commodity-related trades have sunk under water. The Aussie took a nose dive vs. the two dominant safe havens, i.e. the US Dollar and the Japanese Yen, and turned range bound vs. the Kiwi.

In the not too distant past, there had been some signs of a tentative recovery in the Aussie. However, those signs quickly became mixed messages, offering nothing but false hope. Simply put, China continued to lose its grip on its financial system. Now, as always, China has been the wild card for the Aussie. We've already elaborated on the fact that China can't keep the Yuan high; at best, it can only slow its depreciation. But can China's latest actions be the springboard for the Aussie to rally? Continue reading "Speculative Bets On The Aussie To Rise?"

Aussie Dollar: A Matter of Timing?

Lior Alkalay - INO.com Contributor - Forex

About two weeks ago I shifted the reader's attention to the upcoming rotation back into commodities and the commodities FX play, i.e. the Norwegian Krone and the Aussie Dollar. While I had initially predicted back in May the 2nd, the Norwegian Krone has instead rallied on the back of appetite for Oil and the general lackluster appeal of the dollar. But that was and is still not the case for the Aussie Dollar. It seems that investors in the Aussie dollar are waiting for some cue, some development that has yet to materialize. What is this development and what would be its likely impact?

Aussie Reality Check

Despite the Australian economy being in relatively fair shape and with inflation levels still higher than its western peers, the Reserve Bank of Australia has keep the easing pedal pushed and slashed interest rates. And the basis for the RBA's policy decision? Of course, still tepid data from China and an uptick in Australia's inflation, which together lowered the core inflation in the country to 2.27%. The continued rise in housing prices, especially in the Sydney area, was largely ignored and essentially shrugged off by an RBA undeterred from turning off its accommodative policy. Continue reading "Aussie Dollar: A Matter of Timing?"