AUD/USD rise is likely to slow until Friday
Here's a piece up on the Bloomberg website re the Australian dollar with comments from Westpac senior currency strategist Sean Callow:
- "The RBA might be dismayed by the break of 0.80 but given the commodity price backing is so strong, they should take some comfort that the A$ doesn't seem overvalued. It's a headwind, but they saw worse in 2011-12."
And similar from RBA board member Ian Harper along similar lines.
The Bloomberg piece adds that:
- A large build up of options contracts that give traders the right to sell as much as A$4.3 billion of the currency at 79 cents remain in play until Friday, which is likely to slow its ascent over the next few days.