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J.P.Morgan Add To Long AUD/CAD Exposure

FOREX

Late on Friday J.P.Morgan noted that “significant rallies in the commodity complex over the last few weeks, have a clear demand side angle to them. China reopening and property market stimulus expectations drove copper to new YtD highs. That helped cyclical currencies such as AUD perform.”

  • “We remain long AUD on crosses against CAD and GBP. Indeed, we mapped AUD returns against China growth to confirm that they don’t look excessive as yet.”
  • “As a result, we want to increase our exposure to the theme of China reopening and property market stimulus, but remain mindful of U.S. growth risks, so we opt to rotate out of USD/CAD longs into an overlay of AUD/CAD cash with the existing bullish AUD/CAD options position.”
  • They recommended entering a long AUD/CAD position at C$0.9342, with a stop set at C$0.9156.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
Energy BulletsCommodities
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
Energy BulletsCommodities

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