Steven Saywell, global head of foreign exchange strategy at BNP Paribas, observed that from afar, the Australian currency is the world's proxy for Asian growth...

Tom McKay

Steven Saywell, global head of foreign exchange strategy at BNP Paribas, observed that from afar, the Australian currency is the world's proxy for Asian growth and that the market is too bearish when it comes to the Australian dollar. He says its yield appeal will keep foreign investors buying in spite of the Reserve Bank of Australia's arm-twisting. Among reserve holders, the triple-A credit rating is attractive, but it's not the main driver of the investment. I would say the reserve managers like Australia because it's high return and high yield, that's the attraction. On the RBA he said Lots of central banks have tried to talk down their currencies... facing headwinds, so I think he's going to struggle unless they physically want to intervene. BNP has a US98ยข year-end forecast for the AUD. Read the full article: (VIEW LINK)


About this contributor

Tom McKay

Tom McKay

Managing Director and Co-Founder, Livewire

I'm the Managing Director and Co-Founder of Livewire. I'm passionate about collecting and curating the markets most informed insights every day so that our members can discover new investment ideas. If you would like to get in touch - please use...

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