(Bloomberg) — Investors should buy the Australian dollar versus currencies like euro and Swiss franc, a strategy that benefits from a tighter Reserve Bank policy and minimizes risks associated with the greenback.
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That’s the view of UBS Group AG, which says the Aussie will rally against these exchange rates as sticky inflation keeps the RBA from loosening its policy sooner than other Group-of-10 peers. Bank of America says an expected rebound in China’s economy is another reason to buy the Australian dollar versus other currencies.
These trades put Aussie bulls in a sweet spot as they nearly remove the biggest wild card that’s been whipsawing global foreign-exchange markets this year — the US dollar. While the Australian currency along with most of its G-10 peers has weakened against the greenback of late, it’s up versus nearly all other major exchange…
