ANZ suggests buying AUD/NZD at current levels

The RBNZ decision comes shortly after the end of US trading at 2100 GMT ( preview here). The market is looking for either a 25 basis point or 50 bps cut.

ANZ isn't waiting for the results. They recommend buying AUD/NZD at current levels (1.1200).

"On the NZ side of the ledger we have seen a softer CPI print than expected, and another weak dairy auction. In contrast, in Australia the data have continued to point to stability (though at a relatively low level)."

They also note that RBA Governor Stevens' speech earlier today set a high threshold for easing further. Aggressive RBNZ easing is already priced in, but they don't see that as a barrier to gains.

They recommend buying here with a stop at 1.1000 and initial target of 1.1600.

They don't mention it, but technically, the pair is also on the verge of a bullish crossover with the 100-day moving average about to overtake the 200-dman.