From the AFR comes RBS’s head of macro strategy in Asia, Greg Gibbs:
…”Even though iron ore prices have been relatively stable since the last RBA meeting… the broader theme around commodities is quite soft,” said Mr Gibbs. “There’s a general bearishness around commodity currencies.”
“It does suggest that the data is not all that bad and there’s not really something for the RBA to be jumping at…At current levels, “it just gets harder for the RBA to argue that a further fall in the currency is both likely and necessary…Certainly you might look at the Aussie and think it’s going to outperform some of the commodity currencies … I wouldn’t be sitting there comfortably short at the moment.”
