Goldman Says Bet on Aussie as Optimism on China Growth Increases

From bnnbloomberg.ca

Capitalizing on improving Chinese growth while side-stepping onshore yuan risk is a foreign-exchange quandary to which the Australian dollar may be the answer. That’s the view of Goldman Sachs Group Inc.’s Zach Pandl, who says investors should go long the Aussie versus the New Zealand dollar, the Canadian dollar or the South African rand. Those crosses provide optimal exposure to Chinese growth with low sensitivity to commodity prices or risk sentiment, he says. The onshore yuan is hampered by ongoing U.S.-China trade talks and China’s policy to keep the exchange rate stable. Meanwhile, the Chinese economy, the ... (full story)