Westpac Macro FX Ideas

From the FXWW Chatroom: Sell GBP/AUD: looking for a downside break of recent tightening range
Entry: Look to sell 100% at 1.6110, Stop: 1.6175, Target: 1.5810
Rationale:
Recent data from China underscore the One Belt/One Road investment driver for 2017
Chinese residential investment cycle is also turning up now (based into 2016)
Consequently, bulk commodities are rising again on this investment demand and Chinese supply restrictions, so support AUD
Realities of Brexit negotiations approach as UK’s Parliament has passed the Article 50 Bill
Opportunistic moves by SNP, to call for another referendum, increase uncertainty and divisive politics within UK
Re-election of Tusk increases the likelihood of tough EU stance on Brexit negotiations
BoE is unlikely to alter policy with Brexit uncertainties appearing to rise and data into 2017 softening

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