FXStreet (Delhi) – Research Team at BNP Paribas, suggests that AUD weakness since the start of the year is consistent with China worries and the equity market sell-off but we think prospects for an AUD recovery are limited even if sentiment stabilizes. Key Quotes “Any rebound in stocks and commodity prices is likely to be accompanied by a fairly quick recovery in Fed expectations, keeping rate differentials moving against AUDUSD. Furthermore, BNP Paribas FX Positioning Analysis signals short AUD positioning remains light, reducing scope for a short squeeze. Australian data has held up well so far but may stumble going forward. Our economists expect the December jobs report to show the unemployment rate rising to 6% on Thursday. We remain short AUDCAD and, via options, short AUDUSD.” For more information, read our latest forex news.