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2 Aug 2013
Flash: AUD demand remains weak, AUD/JPY to fall? – Westpac
FXstreet.com (New York) - We continue to see consistent signs of Japanese selling of AUD assets through the various data sources we monitor, though Japanese demand for AUD uridashi remains soft, notes Sean Callow, a Global FX Strategist at Westpac.
Key quotes
Recent, Investment Trust Association data suggests that demand remains weak. MOF data confirms the same – bottom line, Japanese demand for the AUD remains weak and that's despite the recent fall in AUD/JPY.”
“Using Westpac’s AUD uridashi database, we find that Japanese investors have sold AUD 14.2bn of Australian retail bonds in the last year (to end July). Using Investment Trust Association Japan, we find the value of investment trusts invested in Australia have fallen by AUD19.4bn in the last year (to June). Using Official MOF data we find Japanese investors have sold AUD 23bn in the last year (to May).”
Key quotes
Recent, Investment Trust Association data suggests that demand remains weak. MOF data confirms the same – bottom line, Japanese demand for the AUD remains weak and that's despite the recent fall in AUD/JPY.”
“Using Westpac’s AUD uridashi database, we find that Japanese investors have sold AUD 14.2bn of Australian retail bonds in the last year (to end July). Using Investment Trust Association Japan, we find the value of investment trusts invested in Australia have fallen by AUD19.4bn in the last year (to June). Using Official MOF data we find Japanese investors have sold AUD 23bn in the last year (to May).”