FXStreet (Barcelona) – The BNP Paribas Team suggests fading any AUD strength and remain short AUD/NZD.
Key Quotes
“Our economists note that, at face value, Australia’s Q1 GDP report appears robust with growth of 0.9%, above market expectations for 0.7%. The underlying details, however, were soft. The entire expansion of the economy can be explained by net exports, inventories and the statistical discrepancy, with domestic demand growth flat over the quarter due to a 3.2% q/q decline in business investment.”
“The data supports the RBA’s view that further rate cuts are possible if data disappoints. The RBA is also likely to cut if the AUD remains too strong.”
“As such, we expect the AUD’s bullish reaction to the release to be temporary and remains short AUDNZD.”
(Market News Provided by FXstreet)