Nordea note that "AUD and NZD look......>

AUSSIE-KIWI: Nordea note that "AUD and NZD look overbought, in particular if the

US/Chinese tensions are about to re-escalate with according setbacks for risk

assets. We prefer NZD to AUD as AUD has thrived due to a relative positive mood

around China vs. RoW growth. AUD has traded like a rocket in recent weeks

despite starring directly into a housing market abyss again. Current auction

clearance data suggest that Australian house prices will drop (at least) 1.5% a

month in the coming period. Ouch. Technically, a short position in AUD/NZD looks

compelling as the bearish channel since late-2017 remains intact. We opt to go

short AUD/NZD with a target of 1.02 (and a stop loss at 1.0820) on the cocktail

of higher USD/CNY, weak domestic Australian fundamentals and wobbly risk

appetite ahead."