Via Morgan Stanley, a brief summary:

  • Fed's broad USD index … has room for further weakness
  • China's credit conditions seem to have improved on the margin, which in conjunction with a potential US-China mini trade deal, could lead to a better risk outlook in the near term. … allowing China-related currencies including KRW, AUD and EUR to rally too
  • Germany agreeing on a EUR40bn climate protection package spread over four years and EU finance ministers agreeing to simplify EU fiscal rules further support the post-ECB EUR.

MS like AUD/CAD for a 'trade of the week', targeting 0.9500 with stop at 0.8980

The last time AUD/CAD was at 0.95 was in May, so some patience may be required.