Scanning a few overnight notes, this from Société Générale on the euro and the Australian dollar.
But first, on China:
- China’s stimulus package has delivered better than expected
- Industrial production growth has picked up
- retail sales growth has picked up
- The equity market is the winner … The FX market looks on jealously
Strategically, we like EUR/AUD. Both EUR and AUD benefit from a Chinese pick-up, but only the euro is vulnerable to a US/European trade dispute.