Flash: AUD crosses reinvigorated – BMO Capital Markets

FXstreet.com (New York) - According to Stephen Gallo at BMO Capital Markets, “Market activity as expected was very insubstantial this morning in London in front of heavy mid-week event risk, but the slightly less dovish tone apparent in the RBA minutes was important in our view.”

In essence, “this kept the AUD cross rates alive with a fair bit of activity. In light of yesterday’s weakness in US retail sales, the CAD and the USD underperformed most major currencies by a modest amount and we think it will be important to watch this trend for the weak as a potential avenue of profit. Should the week, on balance, warrant further downside in the USD, the RBA may have provided us with an avenue to trade North American divergence down.” Gallo adds.