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31 Mar 2016
Asia to weaken as Fed still poised to hike – ANZ
Research Team at ANZ, suggests that with the clean-out of long USD positions in March, they now expect fundamentals and US/Asia policy divergence to reassert, pushing USD/Asia higher.
Key Quotes
“That said, given a more gradual pace of normalisation as signalled by the US Federal Reserve in the March FOMC, we have pushed our higher USD/Asia profile to Q2 2016 and beyond.
The RMB firmed against the USD in March, in tandem with other Asian currencies. However, there is a broad, gradual easing trend in the RMB index through much of March, suggesting a bias of the PBoC to guide the RMB basket lower over time.”
Key Quotes
“That said, given a more gradual pace of normalisation as signalled by the US Federal Reserve in the March FOMC, we have pushed our higher USD/Asia profile to Q2 2016 and beyond.
The RMB firmed against the USD in March, in tandem with other Asian currencies. However, there is a broad, gradual easing trend in the RMB index through much of March, suggesting a bias of the PBoC to guide the RMB basket lower over time.”