Credit Agricole CIB Research notes that the scope for a strong Chinese data along with firm Australian data this should support the AUD against the EUR and JPY. CACIB hold a short EUR/AUD position in spot its recommendation portfolio.
"China and local data will all be important for the Antipodeans this week. If US data come out strong, this would likely push US yields higher and lead to further weakness in the AUD and NZD," CACIB notes.
"But our China economist looks for above-consensus China manufacturing PMI data on the back of seasonal factors – fewer factories than usual shut down over the Lunar New Year period. We think strong Chinese data along with firm Australian data will support the AUD against the EUR and JPY," CACIB adds.