Citi on the outlook for AUD/NZD
Citi likes short AUD/NZD targeting a move towards 1.02.
"The RBNZ announced at the board meeting to halt additional asset purchases under the Large Scale Asset Purchase (LSAP) program by 23 July 2021. CitiFX says that as the Bank would know the growing market expectation that it will increase the OCR in November this year, today's decision should be read as the message from the RBNZ implying its will to implement the hike later this year," Citi notes.
"It's a very hawkish outcome given consensus had landed on November as the first live meeting as it seems that August is now live. NZD longs v AUD the preferred expression for follow through. 1.0540 the target near term followed by 1.0410-20 on its way to 1.02 and below," Citi adds.
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