Guys at Goldman Sachs recommends going long Euro vs Aussie dollar. The analysis is based few things:
-> Much of the bad news out of Europe has been priced in.
-> Pressure has been building up on Aussie since the recent RBA dovish comments and slowing Chinese growth.
Aussie dollar might have peaked and will start a gradual weakening over the medium term. Commodities prices may fall with slowing Chinese growth.
Complete article from WSJ. (Might require subscription).
But I remember that Aussie is mainly driven by interest rate and FDI growth. Keeping these 2 factors remains same, I doubt if Aussie will dive much. And if Goldman Sachs report is to be believed then further RBA rate cuts are evident.
-> Much of the bad news out of Europe has been priced in.
-> Pressure has been building up on Aussie since the recent RBA dovish comments and slowing Chinese growth.
Aussie dollar might have peaked and will start a gradual weakening over the medium term. Commodities prices may fall with slowing Chinese growth.
Complete article from WSJ. (Might require subscription).
But I remember that Aussie is mainly driven by interest rate and FDI growth. Keeping these 2 factors remains same, I doubt if Aussie will dive much. And if Goldman Sachs report is to be believed then further RBA rate cuts are evident.
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