SocGen on the Australian dollar
Societe Generale likes buying AUD/USD on dips towards the 0.70 level.
"We get PMI data this week, but the US won't care until they see ISM< so the focus is all on politics as Nancy Pelosi declares a 48-hour deadline on fiscal talks. Are US deadlines like European ones - flexible? We don't think we're going anywhere this week but we're starting with equity futures on the front foot. That provides relief for AUD and NZD, and maybe this week's top currency will end up being CAD, the clear regional winner when it comes to coping with Covid," SocGen notes.
"AUD is helped by good news in the virus, and maybe all the RBA dovishness is now in the price? It may be early but not at all sure we'll get a better chance to go long AUD/USD than a re-test of 0.70 - if it happens," SocGen adds.
