ANZ notes that "A 'Santa rally' is......>

AUSSIE-KIWI: ANZ notes that "A 'Santa rally' is the tendency for equity markets

to strengthen into year-end. In this piece, we explore the extent of this

seasonal support in equity markets, and whether it extends to currencies. For

equities, we found Santa comes bearing gifts more often than not. Australia's

All Ordinaries finished the holiday period higher than it started around 75% of

the time. For FX markets, the pattern is less clear, but the NZD appears to be a

bigger beneficiary of year-end buying than the AUD. The AUD/NZD cross has ended

the holiday period higher only nine times in the last three decades (a 30% hit

rate). We still like AUD/NZD as a relative economic play, however seasonal

strength in the NZD is reason to hold off entering any long positions until

early next year."