Back
10 Feb 2015
Credit Agricole: Sell AUD rallies – eFXnews’
FXStreet (Barcelona) - The eFXnews Team shares Credit Agricole’s view that the recent jump in AUD has been on the back of Chinese data, and suggests selling AUD rallies.
Key Quotes
“Overnight the main focus was on China. At 0.8% YoY (prev. 1.5%, cons. 0.8%) January inflation rose at the slowest pace in more than 5 years. As the latest data increases expectations of further easing measures, risk sentiment was relatively stable in Asian hours.”
“However, given the PBoC’s reluctance when it comes to a more dovish monetary policy stance and as the latest data should weigh on investors’ growth expectations too, any positive market impact is unlikely sustainable.”
“Accordingly we stay of the view that commodity currencies such as the AUD should be sold on rallies, for instance against the NZD.”
“Regardless of still weak business conditions and slowing housing prices the currency rebounded on the back of the latest Chinese data.”
“Nevertheless, all of the above and as Thursday’s employment data is unlikely making a case of the RBA considering a less dovish monetary policy stance anytime soon, upside from the current levels appears unsustainable.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“Overnight the main focus was on China. At 0.8% YoY (prev. 1.5%, cons. 0.8%) January inflation rose at the slowest pace in more than 5 years. As the latest data increases expectations of further easing measures, risk sentiment was relatively stable in Asian hours.”
“However, given the PBoC’s reluctance when it comes to a more dovish monetary policy stance and as the latest data should weigh on investors’ growth expectations too, any positive market impact is unlikely sustainable.”
“Accordingly we stay of the view that commodity currencies such as the AUD should be sold on rallies, for instance against the NZD.”
“Regardless of still weak business conditions and slowing housing prices the currency rebounded on the back of the latest Chinese data.”
“Nevertheless, all of the above and as Thursday’s employment data is unlikely making a case of the RBA considering a less dovish monetary policy stance anytime soon, upside from the current levels appears unsustainable.”
This content has been provided under specific arrangement with eFXnews.