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Nordea go long AUD/NZD with an..........>

AUSSIE-KIWI
AUSSIE-KIWI: Nordea go long AUD/NZD with an initial target of NZ$1.0650.
- Nordea write that "we have warned of an imminent sell-off in NZD for a couple
of weeks, as the New Zealand surprise index is super depressed. Usually, when
the difference between the Australian and New Zealand surprise index gathers
pace as currently, you would expect AUD/NZD to follow suit higher. Despite the
string of negative surprises from New Zealand, the market still remains
relatively less downbeat on the RBNZ outlook compared to the RBA outlook. The
difference between the pricing measured by 9x12 FRAs suggests that RBNZ will
outpace RBA by 20 basis points. Is it all feasible to expect the RBA to cut,
without expectations of a cut from RBNZ gathering momentum as well? In sum, we
think this leaves a decent risk/reward in being long AUD/NZD."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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