On Thursday TD Securities wrote that....>

AUSSIE-KIWI: On Thursday TD Securities wrote that the outlook for AUD/NZD will

depend on "a macro beta coupled with the local stories. We believe that most of

this story centers on terms of trade, growth differentials, risk appetite and

positioning. For one thing, our China proxy implies a move to NZ%1.07, although

we note it explains roughly half the moves in the cross. In addition, we note

that HFFV probably soaks some of the residuals not captured in the China proxy

indicator. There is probably some overlap in these indicators and yet there is

enough variance to pin it down to a separate market factor. The upshot is that

AUD/NZD HFFV indicates a push higher in the cross. It currently sits at NZ$1.05,

though we look to buy into dips around NZ$1.04 rather than chasing any move

higher. We also note that positioning looks equally short in both AUD and NZD

based on the implied signal of our CTA momentum indicator (model points to a

modestly deeper short in AUD that trades with a touch less of a premium)."