FX Bank Trade Ideas Citi - Sell NZDUSD........>

FOREX: FX Bank Trade Ideas

Citi - Sell NZDUSD $0.6660, target $0.6450, stop loss at $0.6750.

Data and policy divergence should remain USD supportive: While much of the

recent focus has been on politics, US data flow has continued to outpace that

elsewhere and this is supporting divergence between the Fed and other central

banks. Data and events this week look more likely to support than undermine this

narrative since the likelihood is for further strong readings from indicators

including the services ISM. Fed rhetoric should support the view that

policymakers remain on course for steady tightening.

NZDUSD an attractive vehicle for USD longs: NZD should be an attractive vehicle

against which to buy USD, because there is scope for NZD-negative disappointment

on the RBNZ decision.