Citibank analysis team are holding on to long AUD/USD positions mainly led by the recent de-escalation of trade tensions.
Key Quotes
“Citi analysts are long AUD/USD, citing a further de-escalation of trade tensions in the near term as well as (1) recent moves in ADXY pointing to AUD strength, (2) the likelihood that Chinese reflation to benefit Australian data momentum soon, (3) thus an opportunity to fade Australian rates pricing that now discount an entire cut from the RBA & (4) expectations for base metal prices to continue to trade higher, potentially boosting AUD terms of trade.”
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