Corporate foreign exchange news
Buy Aussie over yen, says Brown Brothers
Friday, 24 July 2009 09:02:49 GMT

Forex investors should buy the Australian dollar over the Japanese yen on the expectation that China's economic performance will be galvanised in the coming months.In a note to clients, strategists from the New York-based investment house said that the target for the Aussie, as the Australian dollar is known, should be 80 yen. Bloomberg data shows the Aussie hitting its highest level against the yen in three weeks during trading yesterday (July 23rd).Clarifying their rationale, Brown Brothers advised clients: "The Asian region, notably China, is continuing to show signs of picking up steam. At the same time, the yen is likely to remain under pressure in the coming week as improved earnings help to boost equities and calm markets."Australia has strong trade links with China, with the latter responsible for 25 per cent of the antipodean country's merchandise exports in May, official data from the Australian Bureau of Statistics show.Meanwhile, the yen is trading near its lowest level seen this week after a heavy bout of profit taking eases off this morning.

