On Wednesday BNP Paribas added "a six-month...>

FOREX: On Wednesday BNP Paribas added "a six-month USDJPY lower, AUDUSD higher

dual digital structure to our portfolio of recommendations, with strikes at 106

and 0.80 for a cost of 11.90% (spot refs: 0.7671, 109.95). The trade is designed

to benefit from a transition back to a market environment characterized by broad

USD weakness and away from a risk-on/risk-off dominated market."

- BNP's "view is that AUD can outperform the USD in a stable or even slightly

detonating risk environment as the USD's structural vulnerabilities broadly

weigh on the currency. The market also remains lightly priced for RBA rate

hikes, and upside surprises in local data could see a reassessment of the policy

outlook, to the benefit of the AUD."

- BNP noted that "Japanese investors remain under hedged vs. USD depreciation

risk, and a resumption of broad USD weakness could see another period similar to

that seen in January, when USDJPY sold-off despite an improving risk backdrop.

We also would not rule out periodic gains in the JPY as markets contemplate risk

of a change in BOJ monetary policy next year, though we expect these periods to

be short-lived, with the BOJ ultimately remaining on hold."