The sharp pick up in the cost of obtaining AUD funding into June quarter-end was not a complete surprise as it continues the steady rise in Australian funding seen across BBSW, FX forwards and repo since Q3 2017, according to Prashant Newnaha, Senior Asia-Pacific Rates Strategist at TD Securities. Key Quotes “Most market participants appear to have held the view that offshore factors have played a significant role in higher AUD funding costs. Price action into the end of Q2 suggests factors specific to the Australian market are likely at play.” “We believe these domestic drivers of AUD funding are more likely structural in nature. This implies elevated funding levels are likely to remain a feature of the Australian market landscape.” “The key driver for the rise in AUD funding costs is linked to Australian Banks’ largest funding source – deposits. Deposits as a proportion of total funding is sitting at decade highs, but total deposit growth is slipping fast.” “The demand for AUD funding has been most noticeable in FX forwards.” “With financial year-end for 3 of the 4 major banks on 30th September, we anticipate funding pressures are likely to emerge again.” “The demand for AUD funding & the magnitude of the moves could be more pronounced with year-end for 3 of the 4 majors.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next FOMC Minutes in the limelight today – Nordea Markets FX Street 4 years The sharp pick up in the cost of obtaining AUD funding into June quarter-end was not a complete surprise as it continues the steady rise in Australian funding seen across BBSW, FX forwards and repo since Q3 2017, according to Prashant Newnaha, Senior Asia-Pacific Rates Strategist at TD Securities. Key Quotes "Most market participants appear to have held the view that offshore factors have played a significant role in higher AUD funding costs. Price action into the end of Q2 suggests factors specific to the Australian market are likely at play." "We believe… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.