Barclays: sell AUD vs. CAD and NZD
Barclays recommends selling AUD versus CAD and NZD.
In their view, Aussie will stay affected by the “lingering concerns about China growth”. While, the Reserve Bank of Australia is likely to maintain easing bias, the Reserve Bank of New Zealand and the Bank of Canada would probably remain firmly on hold, reflecting concerns about local housing markets. Moreover, Canada is likely to benefit from cyclical outperformance of the US economy and steady recovery in the US housing market.
AUD: Watch Q1 capital expenditure and April building approvals on Thursday. The RBA will meet next week on June 4.
CAD: Watch the BOC rate decision on Wednesday and March/Q1 GDP on Friday.
NZD: Watch ANZ business confidence on Friday.