Doha Talks Add to AUD & CAD Downside Vulnerability - BNPP
Doha Talks Add to AUD & CAD Downside Vulnerability - BNPP
Research Team at BNP Paribas, suggests that the commodity strategists
note that the Doha meeting produced the most bearish outcome for oil
prices amongst the various scenarios the market was looking at: no deal,
no future calendar and a fight for market share that is still very much
at the heart of producer policy.
Key Quotes
“Given
the current oversupply problem and BNP Paribas remains bearish on crude
from current levels The oil market has opened lower this morning and
should continue to trade lower over the next few days. Other linked
commodity prices such as iron ore are also lower this morning.
We
suspect it may be a challenging start of the week for CAD and AUD. BNP
Paribas FX Positioning highlights that AUD (+19) and CAD (+5) are now
the second and third largest long positions among G10 FX. AUD especially
looks vulnerable.
On Tuesday, RBA minutes may shed more light
on the adjustment to the easing bias at the last policy meeting. We
remain short AUDNZD targeting 1.06 noting far less vulnerability on
positioning from NZD.”
