CNH crosses: Buy dips after consolidation - ANZ
|Irene Cheung, Research Analyst at ANZ, maintains their view of buying CNH crosses on dips as they expect that CNH could underperform again after the current period of consolidation.
Key Quotes
“We will be more constructive on the CNH if Chinese exports recover and are further, coupled with progress in China’s economic restructuring.
FX volatility, which has come off during this period of consolidation, could rebound – especially if markets start to react to developments in the US presidential election. We advise corporates with exposure to CNH crosses to hedge.
Among the crosses, we see upside risk in JPY/CNH and NZD/CNH. The current level of NZD/CNH offers an attractive entry level to go long in the pair (Spot 4.8460, Target 5.10, Stop-loss 4.72).”
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