Target 5.73, entry 6.02, stop 6.18
First, AUD/NOK is the most expensive cross in G10. Second, while Norges is
likely done easing, Australian short-end yields remain too high in light of the
RBA’s disinflation problem. Even at current rates, the cross is trading too rich
to the short-end spread. Third, if the RBA were to be helped by rising global
inflation in H2, selling AUD against NOK offers good protection as the latter
historically outperforms during inflationary periods. Lastly, we expect oil to
outperform iron ore in the coming weeks on demand-supply fundamentals.
The post Deutsche Bank Trade of the Week: Short AUD/CAD appeared first on www.forextell.com.