NZD, AUD CAD: Gradual Turn Against USD; What's The Trade? – SocGen

Societe Generale FX Strategy Research notes that NZD, AUD, and CAD are in the process of tracing out gradual turns against the US dollar.

“Anticipation of a higher milk price forecast from Fonterra this Thursday, and hope of tax cuts on Thursday when a bigger budget surplus is expected to be announced in New Zealand, are boosting NZD which is dragging AUD along behind it; CAD is following at a respectable distance behind,” SocGen notes. 

“CAD  is more sensitive to oil than the others, and the recent bounce reflects optimism about the upcoming OPEC announcement,” SocGen adds. 

Strategy-wise, SocGen thinks that AUD/JPY and NZD/JPY are both attractive longs here, but for a very short-term trade, NZD/JPY is the one with most to gain from Thursday’s Budget. 

Source: Societe Generale Cross Asset Research

The article is published by one of the foremost sources of Forex trading information. Link to the original article above.

from eFXNews

from Online Forex Trading Resource
View thesource article here


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s