14 Jan 2016
AUDUSD to sustain break below 0.70, target 0.68 (end Q1) - BNPP
FXStreet (Delhi) – Research Team at BNP Paribas, notes that despite registering a slight fall in headline employment, December’s Australian labour market report was better than expected.
Key Quotes
“Our economists argue that at face value, the data will likely provide additional comfort to the RBA. However, they also note changes to sampling and survey methodology make signal extraction an issue. The better data has been unable to prevent AUDUSD from continuing to fall, as risk sentiment remains under pressure and USDCNH pushes above 6.60.
Looking forward, we continue to expect the pair to decline to our end Q1 target of 0.68 and remain short AUDUSD via options. We are also short AUDCAD, in part because BNPP Positioning Analysis signals the market is underweight short AUD and overweight short CAD.”
Key Quotes
“Our economists argue that at face value, the data will likely provide additional comfort to the RBA. However, they also note changes to sampling and survey methodology make signal extraction an issue. The better data has been unable to prevent AUDUSD from continuing to fall, as risk sentiment remains under pressure and USDCNH pushes above 6.60.
Looking forward, we continue to expect the pair to decline to our end Q1 target of 0.68 and remain short AUDUSD via options. We are also short AUDCAD, in part because BNPP Positioning Analysis signals the market is underweight short AUD and overweight short CAD.”