8 Jun 2015
Bearish outlook prevails in AUD – JPM
FXStreet (Edinburgh) - Analysts at JP Morgan recommend selling the Aussie dollar, specially in the case of a probable Fed’s lift-off in September.
Key Quotes
“AUD has neither the worst external nor valuation metrics in G10 (those titles belong to GBP and NZD), but it’s nevertheless vulnerable to the back-up in global bond yields, especially if the payrolls report brings to the fore the prospect of a Fed lift-off in September”.
“So while AUD may not be the single top pick of currencies to sell against a backdrop of rising bond yields and Fed risks, it is nevertheless a reasonable complement to a short basket of high-beta currencies that in our case already includes both GBP and NZD”.
Key Quotes
“AUD has neither the worst external nor valuation metrics in G10 (those titles belong to GBP and NZD), but it’s nevertheless vulnerable to the back-up in global bond yields, especially if the payrolls report brings to the fore the prospect of a Fed lift-off in September”.
“So while AUD may not be the single top pick of currencies to sell against a backdrop of rising bond yields and Fed risks, it is nevertheless a reasonable complement to a short basket of high-beta currencies that in our case already includes both GBP and NZD”.