Bell Potter

Bell FX: The AUD is trading at around USD 0.9425 after comments by PBoC Governor Zhou, suggested that the PBoC would reduce holdings of matured US Treasuries and is looking to end domestic FX interventions, as it gradually moves towards a market-based floating exchange rate. These headlines saw currencies typically associated with diversification away from USD, such as the AUD and NZD, benefit. The euro lost some ground after the German ZEW Survey fell short of expectations, with the current situation index falling to 28.7 in November (31.0 expected) from 29.7, although the expectations index did rise to 54.6 (54.0 expected), the highest level in over four years. But the EUR did find some support after ECB Vice-President Constancio said that quantitative easing was 'a possibility and nothing else'. EUR at about 1.3530 this morning. Today's Forecast Range USD: 0.9335 - 0.9410


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