TD Research discusses AUD outlook and maintains a tactical bullish bias on the crosses, expressing that via holding a long AUD/CAD position* targeting a move towards 0.96.
"The tone of equity markets and risk sentiment more broadly prevails as the major force in the G10. AUD is leading gains in the majors in the wake of Trump's tweet about a 'great deal' with China. With the midterms a week away, the major question is how Trump treats trade discussions if the Dems take control of the House. The trade war is unlikely to end but we also think a lot of bad news is priced in for G10.
We continue to see value in AUD on a tactical basis, targeting a move to 0.96 in AUDCAD," TD argues.
*Recorded in eFXplus Orders