Westpac analysts note that the Australian dollar and Chinese yuan have both fallen about 2-3% against the US dollar over the past 3 months, leaving the cross only slightly higher overall. Key Quotes “At times the correlation is very high e.g. on the break of USD/CNY 7.00, but there is still plenty of room for volatility given divergent domestic factors.” “We expect the RBA to hold steady at 1% in Sep then cut the cash rate in Oct, while maintaining a dovish tone. This should continue to weigh on AUD on crosses but markets are already priced for -36bp of easing by end-2019.” “AUD/USD probably also has a lot of bad news on US-China trade priced in, judging by spec positioning. And while the best is surely past in terms of commodity prices, Australia’s latest trade report showed a record surplus.” “The trade-weighted yuan is already at lows since 2014 and capital outflows remain a concern for Chinese policymakers. So sharp yuan depreciation against US$ seems unlikely. Our base case for USD/CNY year-end is 7.20. With AUD/USD at 0.6700, AUD/CNY would be around 4.82, but nearer term, risks are to the upside, to 4.90.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Bitcoin Cash market update: BCH/USD $300 support in jeopardy; bearish action targets $200 FX Street 4 years Westpac analysts note that the Australian dollar and Chinese yuan have both fallen about 2-3% against the US dollar over the past 3 months, leaving the cross only slightly higher overall. Key Quotes "At times the correlation is very high e.g. on the break of USD/CNY 7.00, but there is still plenty of room for volatility given divergent domestic factors." "We expect the RBA to hold steady at 1% in Sep then cut the cash rate in Oct, while maintaining a dovish tone. This should continue to weigh on AUD on crosses but markets are already priced for -36bp of… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
