Rebounding Iron Ore Prices Support AUD Ahead of Key Employment Report - BNPP
Rebounding Iron Ore Prices Support AUD Ahead of Key Employment Report - BNPP
Research Team at BNP Paribas, suggests that the commodity currencies
have been gradually gaining ground against the USD this week and this
comes against a back drop of stable equity markets but a rebound of
several key commodity prices.
Key Quotes
“The
rise of oil in recent days has caused us to take profit on our
USDCAD/long oil trade recommendation established on March 31. Meanwhile,
a renewed bounce in iron ore prices (rising almost 7% this week) is
likely to be feeding through to support for the AUD.
Overnight,
the conditions component of the NAB business survey was stronger than
expected, reaching its highest level since early 2008. Thursday’s
employment report is a focal point for the AUD as this is a potential
catalyst for an increase in pricing for renewed RBA rate cuts. We remain
short AUDNZD targeting 1.06 and long EURAUD via a derivatives
recommendation.”
(Market News Provided by FXstreet)
