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The Australian Dollar is a buy with strategists at Société Générale.
The investment bank thinks the case for gains is building as China's economy is poised to see growth increase, which would typically help financial proxies like the Aussie.
"After collapsing last year, Chinese demand for Australian iron ore appears to be making a comeback, and the Australian economy is likely to benefit from green shoots in China," says Olivier Korber, a strategist at Soc Gen.
This week, China reported the above-expectation economic data covering the first two months of 2025, as local government spending on infrastructure investment kicked into gear.
Korber looks to express AUD upside against the U.S. Dollar.
"AUD/USD is now edging close to the 0.64 upper bound of its range," he notes.
Soc Gen thinks selling the U.S. Dollar against the Australian Dollar makes sense because the Federal Reserve will need to reassure nervous markets, hinting at a 'dovish' outcome.
This "could pressure USD rates further. The backdrop and timing look appropriate to buy AUD/USD calls," says Korber.
Above: AUD/USD at daily intervals.
The Australian Dollar has risen steadily against the U.S. Dollar in March, and is up on the year.
The pair looks to be capped by a technical ceiling at 0.64, and a break above here would open the door to extended gains.
Although the AUD has traded firmly against the U.S. Dollar it is notably weaker against European currencies, including the Pound.
The 2025 FX playbook has favoured European FX courtesy of expectations the region has turned a corner thanks to steps towards peace in Ukraine and huge spending plans in Germany.
However, any upside break in AUD/USD would potentially boost AUD against the European currencies and hint that an interim peak has been reached in the likes of GBP/AUD and EUR/AUD.