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Chinese data unlikely to boost AUD and CAD - BNPP

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Research Team at BNP Paribas, suggests that in China, they expect both the official and the Caixin/Markit PMIs to tick higher from their respective readings of 49 and 48 on Friday.

    Key Quotes

    “The unwinding of a seasonal drag from the Lunar New Year and a strong recovery in the property market all argue in favour of some firming in the numbers.

    We do not see a significant boost for the G10 commodity exporter currencies however as we see a larger threat from a repricing of Fed expectations, that could negatively impact the risk environment, and domestic central bank resistance to a tightening in financial conditions via further currency gains.

    Our Australian economist believes the RBA could be making its easing bias more explicit to counter the recent tightening in financial conditions. A BoC policymaker will be speaking in mid-week and we see risk that the rhetoric turns more dovish again after the government released its budget earlier this month. We expect AUD and CAD to underperform going forward.”
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