Scanning a few overnight notes, this from Société Générale on the euro and the Australian dollar.

But first, on China:

  • China's stimulus package has delivered better than expected
  • Industrial production growth has picked up
  • retail sales growth has picked up
  • The equity market is the winner … The FX market looks on jealously

Strategically, we like EUR/AUD. Both EUR and AUD benefit from a Chinese pick-up, but only the euro is vulnerable to a US/European trade dispute.