Diverging commodities bloc - Deutsche Bank

FXStreet (Guatemala) - Analysts at Deutsche Bank explained that AUD and NZD have little to cheer about this year.

Key Quotes:

"China FX weakness impacts both disproportionately given their trade-weights, but it also supports domestic commodity production in China by pushing commodity breakeven prices lower.

Combined with challenging balance of payments dynamics and FX that has lagged the overall rally in the dollar we are bearish on both the Antipodes. We are less negative on CAD given the magnitude of the adjustment and closer ties to the US business cycle and would buy against NOK."