AUD/USD: Buy at uptrend support at 0.7330 - SocGen

18.05.2017 / 21:04

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Societe Generale FX Reserch notes that soft inflation, steady/sluggish growth and fading hopes of a meaningful fiscal boost are all good fundamental reasons for Treasury yields to have got stuck in a range rather than rising further.

" The more markets perceive US yields to be in a range rather than a significant uptrend, the less support the dollar will find, even on days of turmoil." SocGen argues.

Elsewhere, SocGen notes that Australian jobs data saw the unemployment rate fall to 5.7% and employment increase by 37,400.

" This is a hideously volatile data series, but the 6 month average job gain is now 27,800, up from a low of 800 last September, and that pick-up is mostly driven by full-time jobs." Bank adds.

In that regard, SocGen recommends buying AUD/USD against the uptrend support at 0.7330.

Source of the graph: Bloomberg Pro Terminal

Senan Fuchedzhiev - Trader

Varchev Traders

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AUD/USD: Buy at uptrend support at 0.7330 - SocGen

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