Forex Flash: Time to buy currencies in other regions? - RBS
FXstreet.com (Barcelona) - The USD performance vs the AUD was surprisingly solid yesterday, says Greg Gibbs, FX strategist at RBS, "down more than I would have expected in a stronger global growth environment" he adds.
On the Yen front, Greg notes: "The JPY weakening trend is now likely to weigh on competing currencies in Asia and in general it can start to give the USD more support. It is a reason to consider levels to buy currencies in other regions such as Latam vs. Asia. While my thoughts are not well formed yet, the AUD/BRL comes to mind. The chart is threatening a major top. Diverging inflation pressures in the two countries and relative strength in the AUD since mid-2011 suggests a bigger downward move."
On the Yen front, Greg notes: "The JPY weakening trend is now likely to weigh on competing currencies in Asia and in general it can start to give the USD more support. It is a reason to consider levels to buy currencies in other regions such as Latam vs. Asia. While my thoughts are not well formed yet, the AUD/BRL comes to mind. The chart is threatening a major top. Diverging inflation pressures in the two countries and relative strength in the AUD since mid-2011 suggests a bigger downward move."
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