AUD: Breaking Out Of Ranges On Crosses; What’s Next & How To Position? – Nomura

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The Australian dollar slipped a bit lower amid a not-so-great jobs report. What’s next? Here is the view from Nomura:

Here is their view, courtesy of eFXnews:

Nomura FX Strategy Research discuss AUD outlook, recommending to tactically positioning for further AUD downside against the EUR via an options structure expiring on Dec-21.

“AUD continues to fall out of favour, breaking out of established ranges on a number of crosses.

In our view, the headwinds have yet to reach maximum force and AUD underperformance may continue in the near term. Positioning measures remain skewed, momentum in industrial metal prices has turned, and the soft inflation backdrop points to the RBA remaining on the sidelines for an extended period

We look to tactically position for a further appreciation in EUR/AUD via a 1.5850/1.6100 call spread (expiring on 21 December),’ Nomura argues.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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