Sentiment about the Australian dollar is still too bearish – SocGen

Sentiment about the Australian dollar is still too bearish – SocGen Author: Adam Button | Category: News

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Chinese and global growth has picked up

Kit Juckes at Soc Gen today highlights the incredible run in Chinese stock markets so far this year and notes that in yen terms the Shenzhen composite is up a whopping 46% already this year.
The story is stimulus and today's GDP number showed that is working, at least partially.
"From here, the Chinese improvement leaves me thinking that oil prices will hold up and sentiment about the Australian dollar is still too bearish," he writes.
They prefer EUR/AUD shorts as a way to capitalize on growth differentials.
They also note that while AUD/NZD has had a nice rebound to 107 from 103 but still has room to rise.
ForexLive

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