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Sell AUD/USD

Sell AUD/USD

On March 7, 2017, Posted by , In Uncategorized, By , , With No Comments

Currency investors should consider selling AUD/USD this week. “We think further near-term USD appreciation against yield differential-sensitive currencies such as the EUR and JPY is limited, but gains against risk-sensitive currencies such as the AUD have further to run, particularly if equity markets start to falter on the realization of higher US rates. Commodity prices have been one of the main drivers of the AUD since the beginning of this year (Figure 3), but we think iron ore and copper prices are close to their turning points. The RBA is expected to leave policy unchanged this week and provide little support for the currency. Even though modest growth is likely to return in Australia, the wage growth and inflation dynamics remain weak,”

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