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23 Sep 2013
Flash: Play short AUD/JPY via option - ANZ
FXstreet.com (Barcelona) - According to Richard Yetsenga, FX Strategist at ANZ, playing a short AUD/JPY may yield good results.
Key Quotes
"Asian and antipodean currencies have received support for some weeks by an upshift in China growth expectations. Our medium term view is for growth in China to ultimately take another step down. While there are some uncertainties about exactly when this
might occur, there are a number of partial indicators which suggest that expectations now risk being surprised on the downside."
"This expectation fits neatly into the Reversification thematic, which comes from both an improvement in the core, and deterioration in some parts of the periphery."
"Due to timing uncertainties over both the China view and the influence of the Fed, we position for AUD/JPY downside via an option (AUD/JPY put, 90 strike, for 143 yen pips)."
Key Quotes
"Asian and antipodean currencies have received support for some weeks by an upshift in China growth expectations. Our medium term view is for growth in China to ultimately take another step down. While there are some uncertainties about exactly when this
might occur, there are a number of partial indicators which suggest that expectations now risk being surprised on the downside."
"This expectation fits neatly into the Reversification thematic, which comes from both an improvement in the core, and deterioration in some parts of the periphery."
"Due to timing uncertainties over both the China view and the influence of the Fed, we position for AUD/JPY downside via an option (AUD/JPY put, 90 strike, for 143 yen pips)."