Thursday, October 22, 2015

CBA attributes AUD pressure to PBoC advisor comments

FXStreet (Bali) - CBA attributed the recent downward pressure in the Aussie to comments from a PBoC policy advisor Bai Chongen.

According tot CBA, Chongen stated that China “shouldn’t stretch to maintain a 7% growth in the future” and that China was investing “too much” in infrastructure.

The bank notes: "The softer momentum in heavy industry in China, and the recalibration in growth drivers towards consumption, is occurring at a time commodity supply is rising."

CBA added the perception of weaker Chinese demand is a negative input for commodity prices, which supports the bank's bearish medium-term view on both the Aussie and Kiwi.
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