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16 Mar 2015
AUD/CNY downtrend intact – Westpac
FXStreet (Barcelona) - Analysts at Westpac, remain bearish on AUD/CNY, explaining that the pair might move towards 4.7000 by the end of the second quarter.
Key Quotes
“AUD/CNY continues to struggle as high beta AUD suffers more from a strong USD, especially given China’s huge trade surpluses in recent months.”
“It should not be one-way traffic though, with demand for Australian debt products quite strong. This should persist, particularly now that ECB QE is in full swing.”
“With speculative positioning heavily short AUD, this could produce some correction higher in AUD/CNY but moves above 4.9000 should draw strong selling interest.”
“Another RBA rate cut by May, a strong USD trend and a soft commodity backdrop leave us targeting 4.7000 for this cross by the end of Q2.”
Key Quotes
“AUD/CNY continues to struggle as high beta AUD suffers more from a strong USD, especially given China’s huge trade surpluses in recent months.”
“It should not be one-way traffic though, with demand for Australian debt products quite strong. This should persist, particularly now that ECB QE is in full swing.”
“With speculative positioning heavily short AUD, this could produce some correction higher in AUD/CNY but moves above 4.9000 should draw strong selling interest.”
“Another RBA rate cut by May, a strong USD trend and a soft commodity backdrop leave us targeting 4.7000 for this cross by the end of Q2.”