Turnaround trade in China? Buy AUD/CAD, ANZ says

<p>Highlights:ANZ is keeping a keen eye on opportunities to buy AUD/CAD, forecasting a rebound towards the 0.89 mark. The bank remains optimistic about this strategy, despite a recent unsuccessful attempt.</p><p>Key Takeaways:</p><ol><li><p>Chinese Economic Data:</p><ul><li>The bank emphasizes that the success of this tactical trade hinges heavily on correctly timing a turnaround in Chinese economic statistics.</li><li>Recent data from Caixin’s manufacturing PMI hinted at early indications of stability in the Chinese economy.</li></ul></li><li><p>Economic Dynamics in the US:</p><ul><li>If the US economy witnesses a downturn while China is on the path of recovery, it will cause the Canadian Dollar (CAD) to depreciate in comparison to the Australian Dollar (AUD).</li></ul></li><li><p>Awaiting More Concrete Data:</p><ul><li>ANZ is adopting a cautious approach, waiting for more tangible signs of stability in the Chinese economy before diving into this tactical trade.</li></ul></li></ol><p>In Summary:</p><p>ANZ is closely monitoring the AUD/CAD pair for buying opportunities on dips, targeting a prospective move towards the 0.89 level. The bank's strategy is largely influenced by economic conditions in China and the US. With initial indications of stability emerging from China, ANZ remains hopeful, though it waits for further confirmatory economic data before making a definitive move.</p><p>For bank trade ideas, <a href="https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD" rel="nofollow" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD&amp;source=gmail&amp;ust=1695912189497000&amp;usg=AOvVaw3cWCWTxZeHp2uzTbcV0Cgk">check out eFX Plus</a>. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. <a href="https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD" rel="nofollow" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD&amp;source=gmail&amp;ust=1695912189497000&amp;usg=AOvVaw3cWCWTxZeHp2uzTbcV0Cgk">Get it here</a>.

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This article was written by Adam Button at www.forexlive.com.