Commodity currencies under performing - TDS

By FXstreet.com | July 25, 2014 AAA

FXStreet (Guatemala) - Shaun Osbourne, Chief FX Strategist at TD Securities explained that the AUD, NZD and CAD are at the bottom of the G-10 FX performance league on the day so far.



Key Quotes:



“The Kiwi remains under pressure following the RBNZ’s “dovish tightening” move earlier this week (alongside another verbal broadside on the currency’s “unjustified” level from the governor) and market-driven-valuation concerns are spilling over into the AUD, it would seem, even as this week’s CPI data has seen the market shift even further away from the miniscule prospect of an RBA ease before year end."



"Both the AUD and NZD show signs of seasonal weakness in August, the AUD particularly so. Our research shows the CAD has been relatively less sensitive to a later summer swoon. In fact, AUD/CAD has fallen in 15 of the past 20 years in August. Commodities are having a rough month (CRB down 3%+ so far) which won’t help the commodity bloc but will help underpin the USD broadly."



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