16 Feb 2015
Stay short AUD and NZD against USD – DB
FXStreet (Barcelona) - According to Deutsche Bank, Chinese easing is of little help to AUD and NZD, and with PBoC expected to act further shorting the antipodeans against the dollar or the pound is recommended.
Key Quotes
“Robin Winkler argued on Wednesday that the Chinese RRR cut last week and the weak CPI print on Tuesday raised the question of whether further Chinese easing would be bullish or bearish for AUD and NZD. We believe it will have bearish implications.”
“Owing to the export-dependence on China, NZD and AUD reflect changes in Chinese aggregate demand more quickly than Chinese policy rates, reinforcing currency trends.”
“What next? Should the PBoC provide further monetary stimulus in the coming weeks, as we strongly expect, we would stay short AUD and NZD against USD or GBP and sell any meaningful squeezes.”
Key Quotes
“Robin Winkler argued on Wednesday that the Chinese RRR cut last week and the weak CPI print on Tuesday raised the question of whether further Chinese easing would be bullish or bearish for AUD and NZD. We believe it will have bearish implications.”
“Owing to the export-dependence on China, NZD and AUD reflect changes in Chinese aggregate demand more quickly than Chinese policy rates, reinforcing currency trends.”
“What next? Should the PBoC provide further monetary stimulus in the coming weeks, as we strongly expect, we would stay short AUD and NZD against USD or GBP and sell any meaningful squeezes.”