Strategic short on AUDJPY
Here we are actively in the market for further downside in AUDJPY after retesting 78.6.
=> From a fundamental perspective the outlook in Australia continues to weaken. Credit, housing and confidence are all slowing and a dovish RBA is the icing on the cake.
=> The "positive" headlines this morning from the US-China trade is increasingly priced in and we see this as a selling opportunity as there is limited upside in AUD from a potential deal.
=> JPY should also catch a bid from US outflows. Headwinds are appearing in earnings and global growth is also slowing.
The risk here to our idea is on the top-side. To give a meaningful break we would need to see a pickup in global growth which in turn will support commodity demand.
=> From a fundamental perspective the outlook in Australia continues to weaken. Credit, housing and confidence are all slowing and a dovish RBA is the icing on the cake.
=> The "positive" headlines this morning from the US-China trade is increasingly priced in and we see this as a selling opportunity as there is limited upside in AUD from a potential deal.
=> JPY should also catch a bid from US outflows. Headwinds are appearing in earnings and global growth is also slowing.
The risk here to our idea is on the top-side. To give a meaningful break we would need to see a pickup in global growth which in turn will support commodity demand.
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