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15 Aug 2013
Flash: Evidence of Japanese demand for the Australian Dollar - RBS
FXstreet.com (Barcelona) - RBS FX Strategist Greg Gibbs notes an article published by Bloomberg in which they run an interesting story about the growing demand by Japanese investors for AUD bonds.
Key Quotes
"Demand has picked up in August judging by anecdotes from banks in Australia that have managed the issuance of recent Kangaroo bond issues. The amounts are not enormous at around $A0.5bn, but they may be indicative of more genuine demand from Japan taking advantage of the lower AUD/JPY exchange rate."
"Japanese investors are highly motivated by value. They were reported to be generally selling AUD bonds earlier in the year when AUD/JPY was rising to multi-year highs. It makes sense that at some point, the lower AUD/JPY would peak their interest to buy."
Key Quotes
"Demand has picked up in August judging by anecdotes from banks in Australia that have managed the issuance of recent Kangaroo bond issues. The amounts are not enormous at around $A0.5bn, but they may be indicative of more genuine demand from Japan taking advantage of the lower AUD/JPY exchange rate."
"Japanese investors are highly motivated by value. They were reported to be generally selling AUD bonds earlier in the year when AUD/JPY was rising to multi-year highs. It makes sense that at some point, the lower AUD/JPY would peak their interest to buy."