Anna 
Kit Juckes, Chief Global FX Strategist at Société Générale, examines the 2-year yield differentials and their impact on the Dollar against the Australian Dollar (AUD).
Juckes suggests that AUD/USD appears undervalued, particularly when compared to EUR/AUD, which he identifies as a potential selling opportunity. Despite the recent movement against the AUD due to the shift in rate differentials, Juckes contends that the Australian Dollar might not be as responsive to short-term rates as the Euro.
While the Reserve Bank of Australia (RBA) conveyed a slightly more hawkish tone on Tuesday, it wasn’t sufficient to alter the overall outlook. Juckes believes that the AUD seems undervalued based on this assessment. Given Australia’s stronger economic position compared to the Eurozone and China’s efforts to stimulate its economy, Juckes views shorting EUR/AUD as an attractive trade for the medium term.
