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9 Apr 2015
Japanese buying of AUD approaching record highs - Westpac
FXStreet (Barcelona) - Robert Rennie of Westpac, notes that Japanese demand for Australian assets has increased, with investors buying AUD 5.5bn worth of Aussie assets in February, FX seems to be a key reason.
Key Quotes
“Yesterday’s MOF BOP data revealed another important lift in terms of Japanese demand for A$ assets. Japanese investors bought A$5.5bn of A$ assets in Feb, after $3.2bn in Jan. There has only been 1 month in the last 10 years where Japanese investors have bought more in any month.”
“Over January and February they bought a total of A$8.75bn. Now that is still shy of the record seen in Aug/ Sep 2011 when we saw A$11.4bn of A$ assets bought in those two months. However, it does suggests strong demand for A$ assets from Japanese investors has returned after the lull seen Q4 when AUD/JPY was above 100.”
“Clearly, we suspect that FX is key part of the story here. However, supply may also be a driver with heavy issuance in the Kangaroo SSA market seen so far this year, with more to come.”
Key Quotes
“Yesterday’s MOF BOP data revealed another important lift in terms of Japanese demand for A$ assets. Japanese investors bought A$5.5bn of A$ assets in Feb, after $3.2bn in Jan. There has only been 1 month in the last 10 years where Japanese investors have bought more in any month.”
“Over January and February they bought a total of A$8.75bn. Now that is still shy of the record seen in Aug/ Sep 2011 when we saw A$11.4bn of A$ assets bought in those two months. However, it does suggests strong demand for A$ assets from Japanese investors has returned after the lull seen Q4 when AUD/JPY was above 100.”
“Clearly, we suspect that FX is key part of the story here. However, supply may also be a driver with heavy issuance in the Kangaroo SSA market seen so far this year, with more to come.”