Citi – AUD, NZD, EUR, JPY Updates – FXWW Chatroom

AUD sellers are back in control and Europe gets down to business. While leveraged investors have remained net buyers but banks and real money names have used the uptick as an opportunity to sell spot. Flows have a 56% sell bias at the moment. This was at a small buy bias immediately after the RBA decision. 

NZDUSD shows a similar pattern with leveraged names as net buyers and real money investors and banks as net sellers. However, turnover is much lower and the overall flows have a 51% bias towards buying 

EURUSD has spent the entire day so far in a 20-pip range and this is evident from the turnover as well which is much lower than the recent average. 

USDJPY has drifted lower since London walked in and flows have a 52% bias towards buying JPY here. Real money investors have led the demand of JPY and banks, leveraged names and corporates are on the same side. 

Despite the best 2 month performance in AUD/USD, Socgen thinks the pair is still vulnerable to Chinese shocks and commodities and Westpac thinks RBA will stay cautious and cutting rates may be needed to weaken AUD 

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