Search ForexCrunch

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.