Buy AUD/USD Targeting 1.11; Buy USD/JPY Targeting 90 - Citi
One of the best long-term bets for FX investors in 2013 is to buy AUD/USD targeting 1.11 as the AUD will stay supported throughout the year on external factors, said Todd Elmer, currency strategist at Citi in an interview with CNBC.
"The factors which are important to the Aussie are not the domestic developments. It doesn't really matter that the economy is performing slightly weaker than what the case was before. What matters is external factors; what matters is that the Fed is doing $1.0 trn of quantitative easing and that China is stabilizing. So, the risk is to the upside," he clarified.
A shorter-term trade for investors is to buy USD/JPY targeting 90 as the pair is poised to add further gains in the near term, he expected.
"Despite the move that we've seen in spot, we are not getting indication that the position is that much stretched. Our proprietary indicators suggest that the positioning is much flatter than what the price is implying. So, there is still a scope for investors to catch-up," he highlighted.