Home AUD/USD: 0.74 If Trump-Xi Detente – NAB
Daily Look

AUD/USD: 0.74 If Trump-Xi Detente – NAB

The Australian Dollar succumbed to pressure from the USD as the month draws to an end. However, there is hope for a recovery.

Here is their view, courtesy of eFXdata:

NAB discusses AUD/USD outlook ahead of the G20 meeting and  argues that If Trump agrees to a temporary cease fire with Xi on December 1st, AUD/USD rally can extend to ~0.74.

“This is not a high conviction call, more like 60:40. And even if we’re right, we suspect it will do no more than grant a temporary stay of execution to further trade action against China, bearing in mind the political, military, technological as well as economic facets to Sino-US relationship issues.

This would though suffice to generate a temporary relief rally in both EM and DM risk markets, relieve upward pressure on USD/CNY and see recent AUD/USD gains extend, potentially to the 0.74 area depending on the starting point (a  level previously noted as a pivot-point prior to the August break-down),” NAB argues.

For lots  more FX trades from major banks, sign up to eFXplus

By signing up for eFXplus via the link above, you are directly supporting  Forex Crunch.

Yohay Elam

Yohay Elam

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 a 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.