Societe Generale Cross Asset Strategy Research notes that AUD and CAD looks cheap , while EUR/USD continues to hold its recent range in the near-term.
"As USD/CNY edges up a little further, with no sign of interest from the authorities to prevent that from happening at the moment, there's also little or no short-term encouragement to buy China-sensitive currencies; which these days, includes AUD, NZD, CAD, and JPY as well as Asian EMFX. AUD and CAD look cheap.
The record sounds a bit broken. It makes for a market where the dollar looks well-supported across the board, so do most equity markets, while longer-dated bond yield meander," SocGen adds.