TD likes AUD/NZD longs
TD Research discusses G10 outlook from a macro perspective over the coming year. TD maintains a long AUD/NZD* position targeting a move towards 1.14 in 2020.
"A less synchronized slowdown could reinforce broader moves in the USD. That said, if we ignore the distraction of offsetting headlines, the macro story (growth and inflation on our tools) looks good in AUD, CAD, NZD, and poor in SEK, JPY, and CHF. Still, for the likes of NZD, the value story has grown tired, and on both HFFV and our global pricing engine it screens rich," TD notes.
"That suggests that AUDNZD has probably bottomed out and we like it higher through the course of 2020...Upbeat data has also helped AUD consolidate, reinforcing our view," TD adds.
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