The flash reading for September of the China HSBC PMI was better than expected, continuing the run of better-than-expected data in China and helping reinforce the recent recovery in “China plays.” While AUD has also recovered in recent weeks, it has lagged most other China plays, and we continue to see room for a further rally in coming weeks. More explicitly, we still see a further rally in AUD/USD to 0.98 as likely by year-end.
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Deutsche Bank