The aussie has underperformed most of the G10 in recent weeks and also the Chinese yuan, slipping from 5.05 to the 4.90 area, reaching lows since early February. In order to see the AUD/CNY pair at 5.04/08, the aussie should take advantage of the expected USD weakness, according to economists at Westpac.

Further yuan appreciation in H2 21

“To recover to our AUD/CNY 5.04-5.08 projections in H2 we will need to see a resumption of substantial broad USD decline, with AUD playing its usual role of outperforming amid USD depreciation.”

“Commodity prices should also help Australia maintain its own historically strong trade surpluses in coming months.”

“With the China 10 year bond yield 3.13% while the Fed maintains QE, portfolio flows also reinforce our forecast for USD/CNY to 6.30 Q3 and 6.20 year-end.”

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Bears take a breather ahead of 1.1300 key support

EUR/USD seesaws around 1.1320-25 during early Wednesday morning in Asia, having dropped the most in 12 days the previous day. The major currency pair’s slump on Tuesday dragged MACD towards teasing the bears while breaking a two-month-long resistance-turned-support area of around 1.1380-85.

EUR/USD News

GBP/USD trades at fresh weekly lows below 1.3600

GBP/USD is trading at its lowest level since January 11, below 1.3600 on Tuesday. Markets remain risk-averse amid the sharp decline witnessed in major equity indexes in the US after the opening bell and the dollar preserves its strength. 

GBP/USD News

Gold flirts with 50/100-SMA as yields seesaw at multi-month peak

Gold prices keep the bounce off weekly low at around $1,815, up 0.05% intraday during Wednesday’s Asian session. Virus woes escalate and so do geopolitical tensions concerning Russia-Ukraine, suggesting safe-havens to stay firmer.

Gold News

Solana price eyes a return to $120 as confidence in SOL fades

Solana price continues to face some strong technically and fundamentally bearish scenarios. In addition, concerns about Solana’s network stability and scalability remain. Those concerns continue to weigh in on the bearish price action ahead.

Read more

Are market-making brokers taking advantage of high leverage? Answers to painful questions

Why do market-makers provide high leverage? Given that a high percentage of forex traders lose money, do these brokers take advantage of traders' risk? Or do brokers pass the orders to the interbank network and make money off of spreads? Here are a few answers.

Read more

Forex MAJORS

Cryptocurrencies

Signatures