Bell Potter

Bell FX: The AUD has opened above the .9300 level after the Dow and S&P 500 indices in the US touched record highs again as the financial markets see the easy monetary policy of the US Fed continuing under the new Chairperson, Janet Yellen. Adding to the renewed strength of the AUD was some further details after the conclusion of China's 3rd Plenum on Friday night which indicate that further market based reforms will continue in China in coming years. Some of the changes from the 3rd Plenum in China include the intention to accelerate the convertibility of yuan, strengthen the rights of farmers, relaxing the one child policy and setting up more private companies to run state owned enterprises. Initially it is thought that these changes and other reforms that remove barriers to competition would cushion the inevitable slowing of the Chinese economy. Today's Forecast Range: 0.9350 - 0.9425


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