The Reserve Bank of Australia is expected to trim rates on Wednesday, and the Japanese yen has improved of late. What are the outlooks for the AUD/USD and USD/JPY?
Here is their view, courtesy of eFXdata:
Citi Research expects a cut from the RBA this week, and looks to sell USD/JPY on rallies.
“Citi Economics has changed its RBA call to a 25bp cut on March 3 and a further 25bp cut at the April meeting. This adds to the case highlighted by CitiFX Strategy earlier: Increasing RBA cut possibilities pressuring AUD,” Citi notes.
“USDJPY is currently trading back above the 108 handle, higher than recent lows of 107.00. Despite this, CitiFX Strategy comments that JPY remains the best safe haven currency in FX and could heads towards 105, though we prefer to sell rallies rather than chase lower,” Citi adds.
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