The Australian dollar slipped a bit lower amid a not-so-great jobs report. What’s next? Here is the view from Nomura:
Here is their view, courtesy of eFXnews:
Nomura FX Strategy Research discuss AUD outlook, recommending to tactically positioning for further AUD downside against the EUR via an options structure expiring on Dec-21.
“AUD continues to fall out of favor, breaking out of established ranges on a number of crosses.
In our view, the headwinds have yet to reach maximum force and AUD underperformance may continue in the near term. Positioning measures remain skewed, momentum in industrial metal prices has turned, and the soft inflation backdrop points to the RBA remaining on the sidelines for an extended period
We look to tactically position for a further appreciation in EUR/AUD via a 1.5850/1.6100 call spread (expiring on 21 December),’ Nomura argues.