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...

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... [Governor Stevens is] facing headwinds, so I think he's going to struggle unless they physically want to intervene. BNP has a US98¢ year-end forecast for the AUD. Read the full article: (VIEW LINK)