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TDUX
Oct 05 - 10:55 AM
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Goldman Sachs: AUD Facing Two-Sided Risks; What is the Trade?

By eFXdata  —  Oct 05 - 10:15 AM

Goldman Sachs Research likes short EUR/AUD exposure in the near-term.

"Looking ahead, we see two-sided risks for the currency. Many of the macro tailwinds that have supported AUD this year remain intact, including resilient global growth, terms of trade tailwinds, a complicated but supportive China macro connection, notable fiscal resilience, and a strong carry offering. As a result, we see scope for further AUD outperformance with our preferred expression being short EUR/AUD," GS notes.

On the domestic front, however, downside risks from the housing and consumer sectors remain a concern. And while our economists have flagged the possibility of additional tightening if inflation surprises to the upside, they expect the RBA to hold policy until easing in 2H2027," GS adds.

Source:
Goldman Sachs Research/Market Commentary

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