29 Mar 2016
Chinese data unlikely to boost AUD and CAD - BNP Paribas
The FX Strategy Team at BNP Paribas doesn't expect Chinese data to boost AUD and CAD given a larger threat from a repricing of Fed expectations, BNP Paribas notes.
Key Quotes
"In China, we expect both the official and the Caixin/Markit PMIs to tick higher from their respective readings of 49 and 48 on Friday. The unwinding of a seasonal drag from the Lunar New Year and a strong recovery in the property market all argue in favour of some firming in the numbers."
"We do not see a significant boost for the G10 commodity exporter currencies however as we see a larger threat from a repricing of Fed expectations, that could negatively impact the risk environment, and domestic central bank resistance to a tightening in financial conditions via further currency gains.
Key Quotes
"In China, we expect both the official and the Caixin/Markit PMIs to tick higher from their respective readings of 49 and 48 on Friday. The unwinding of a seasonal drag from the Lunar New Year and a strong recovery in the property market all argue in favour of some firming in the numbers."
"We do not see a significant boost for the G10 commodity exporter currencies however as we see a larger threat from a repricing of Fed expectations, that could negatively impact the risk environment, and domestic central bank resistance to a tightening in financial conditions via further currency gains.