In view of Greg Gibbs, Analyst at Amplifying Global FX Capital, one interesting development in AUD that has mixed implications for the currency is that short-term AUD funding costs have shot up, surpassing the well-documented rise in USD funding costs over US cash rate expectations. Key Quotes “On the negative side, this highlights the vulnerability of financial conditions in Australia to tightening global credit conditions. On the other hand, it increases the carry return from holding AUD long positions.” “Despite a cash rate target in Australia now 33bp below the Fed funds rate target, the 3mth carry return from a long AUD/USD position has returned to positive for the first time since February.” “The presumption is that the higher AUD funding costs will ease back after the end of the Australian financial year end on 30-June.” 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 AUD/USD bulls looking to build on momentum back above 0.7400 handle FX Street 3 years In view of Greg Gibbs, Analyst at Amplifying Global FX Capital, one interesting development in AUD that has mixed implications for the currency is that short-term AUD funding costs have shot up, surpassing the well-documented rise in USD funding costs over US cash rate expectations. Key Quotes "On the negative side, this highlights the vulnerability of financial conditions in Australia to tightening global credit conditions. On the other hand, it increases the carry return from holding AUD long positions." "Despite a cash rate target in Australia now 33bp below the Fed funds rate target, the 3mth carry return from… Top 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.
