### POV: AUD/JPY & AUD/CHF CROSSES LOOKING...>

AUSSIE: ### POV: AUD/JPY & AUD/CHF CROSSES LOOKING VALUE ON RISK-REWARD

With Aussie inflation benign and most economists expecting the RBA to keep rates

on hold through 2018, topside gains in Aud/Usd could prove to be limited.

However, with December being historically good for equities and risk assets,

investors could turn to the crosses for risk-reward, with particular value seen

against the Jpy & Chf. Target potential L/T - Aud/Jpy at Y88.00, Aud/Chf at

Chf0.7720.

- WHAT WE LEARNED THIS WEEK: Nothing! Economic data this week has been largely

mixed. Continued concerns over housing consumption were partially offset

Tuesday, following a slightly more optimistic outlook on wage growth from the

RBA. Any hope was slammed back into reverse by a weaker set of GDP numbers

overnight (0.6% Q/Q vs MNI median 0.7%). Although GDP is backward looking it

still raises concerns about how/if/when the Australian economy will pick up.

- WHAT TO LOOK OUT FOR GOING FORWARD: Australian Retail Sales Jan11, CPI Jan31,

RBA Cash rate Feb6, SoMP Feb9 and the RBA Minutes Feb20.