AUD carry trades...
by, 25th-June-2009 at 12:44 PM (789 Views)
focus will be on Asian equities. If they falter on weak US equities overnight,
they could reduce the appetite for carry trades. In particular, AUD/USD will find it
increasingly difficult to ignore downside risks in Asian equities... against a weak equity background, markets will favour currencies that depend more on domestic demand than exports for growth... 'tis others' opinion.
In any case, the arrow seems to be pointing at RBA's hold on the current rate, with US Fed doing nothing with theirs, RBA is running out of option... the rate has to come down - my guess.