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RBC Recommend Short AUD/NZD as Trade of the Week

FOREX
  • RBC's trade of the week recommends a short AUD/NZD position targeting 1.0650 with a stop at 1.0940.
  • With market pricing for the RBNZ somewhere between a 50bp and 75bp hike, but the case for the RBNZ joining the 75bp trend is strong.
  • Although market pricing for the rates profile is already ahead of the RBNZ view, RBC don’t think the RBNZ would need to go as far as endorsing this profile to be perceived as hawkish.
  • For AUD, they see the currency as vulnerable to an unwind of the improved sentiment in China as the risk of more widespread lockdowns increases
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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