AUD seen as losing it's bounce by ANZ research
Just read over a report from ANZ looking at a bearish picture for AUD
Their reasoning was as follows:
The AUD has started the year with a return of its trademark volatility. While the recovery that we have seen from the lows early this month has been impressive, we do not see it as sustainable. The domestic data will likely remain below par,
AUD/USD and we do not think that the international environment will provide a positive backdrop for much longer. Growth is slowing and liquidity has become tight.
My concern with AUD is that any resolution in the US China trade disputes is going to lift AUD due to the close trading relationship between Australia and China. I have read a few bearish Australian dollar calls recently< Eamoon posted one here earlier, and slowing growth is cited as a key factor. (as an aside, speaking of Eamoon, the kangaroo shown is actually from Eamonn's back garden ;-) ) However, Trump will want to get a deal done. If NAFTA, or the USMC as it is now called, is anything to go by Trump will get the deal done. So, sellers of AUD be wary of that dynamic coming into play.
