From ANZ's weekly strategy piece for FX.
The AUD may be due for a tactical squeeze higher.
- While the domestic data flow is uninspiring from an RBA rate hike perspective, it remains positive.
- So with the global environment dominating moves, we see a bit of room for upside. Chinese data is due to turn more positive, the CNY is stable, and EMs look stable for now.
- With the AUD having borne the brunt of global bears, some reprieve is in order.
ANZ Fair value: 0.70
ANZ describe their bias for the coming week as mildly bullish
And for the coming month as neutral