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RBC Recommend Short AUD/CAD

FOREX

RBC identify short AUD/CAD as their trade of the week.

  • They note that “the bounce in the AUD-crosses over the last two weeks looks ripe to sell as we await key data in China later in the week.”
  • “Chinese data have surprised consistently to the downside recently and the manufacturing index is already in contractionary territory.”
  • “Domestically, monthly inflation in Australia looks set to slow further in August.”
  • “We retain a bias toward USD gains, possibly reinforced this week by month-end flow, which would generally imply CAD outperformance on the G10 crosses.”
  • They recommended entry at C$0.8765, targeting a move to C$0.8600 with a stop set at C$0.8850.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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