ANZ "continue to like being short NZD. The.....>

KIWI: ANZ "continue to like being short NZD. The domestic picture continues to

deteriorate and we think that global conditions (with liquidity tightening and

global growth slowing towards trend, if not below) will act as a key headwind

for cyclical currencies. However, the challenge is picking how to express that.

We are a little reluctant here to be short against the greenback, which is

looking relatively fairly priced against fundamentals (although the global data

over the next couple of weeks will help determine how true that is). Instead, we

like being long AUD/NZD (short NZD/AUD). In some ways it is a case of who is the

ugliest duckling, but we think that at current levels in this cross, the NZD

wins that one."