By eFXdata — Apr 24 - 09:30 AM
Societe Generale Research discusses AUD/USD, and USD/JPY outlook in the near-term.
Inflation is sticky and concerns about an imminent recession are fading along with the regional banking scare. Are dollar bears vulnerable to stronger US GDP data this week (we’re forecasting an above consensus 2.2% growth rate, thanks to strong consumer spending)?," SocGen notes.
"The other three major events to watch this week are the Australian CPI data tomorrow, Riksbank on Wednesday and Bank of Japan on Friday. We’re a bit below consensus on Trimmed Mean Australian CPI (6.5% y/y vs 6.9% last), so it’s hard to see AUD/USD escaping its 0.66-0.68 range; A 50bp Riksbank hike is priced in, but we’ll watch for current-friendly comment, and as for the BOJ, any further YCC adjustment is very unlikely yet; The market doesn’t expect much, but don’t rule out a USD/JPY move towards 140 in the coming weeks," SocGen adds.
Société Générale Research/Market Commentary