This snippet via EFX
Citi Research notes that historically, worse than expected US data may be reduced in the 2H, which may limit USD downtrend.
"USD may range trade in the short term. Thus, AUD and NZD adjustment may bring buy-on-dip opportunities," Citi argues.
"We expect Australia-US 10 year government bond spread may widen from 22bps to 70bps while NZ-US may widen from 58bps to 85bps. The yield advantage may support AUD and NZD at lows," Citi adds.
AUD/USD is trading circa 0.7583 and NZD/USD 0.7283 is trading circa as of writing.
Source: Citi Research
