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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
FOREX
- The rise in Covid uncertainty in addition to the significant deceleration in Chinese economic activity have both been weighing on the Aussie, which keeps reaching new lows against the US Dollar.
- The chart below shows that Chinese equities, which have been under pressure since their February peak (which corresponds to the peak In Chinese economy), have shown strong co-movement with AUDUSD in recent years.
- Hence, we will see if today’s 50bps cut in RRR and potential further easing in China policy will limit the downside risk on China-sensitive currency such as the Australian Dollar.
- AUD is the most undervalued currency among the G10 world according to our BEER valuation model (undervalued by over 16%).
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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