An FX trade recommendation from Soc Gen

Buy at 1.1200

  • Stop at 1.10, profit target is 1.16

SG cite:

1. Divergence in monetary policy between the RBA and RBNZ

  • NZ inflation significantly lower than Australia's, RBNZ more likely to cut than RBA

2. Iron ore price gains vs. poor dairy price performance

SG do highlight risks to the trade

  • Say Australia's economy has a greater exposure to China's industrial cycle
  • RBNZ cuts may be limited to only one of 25bp this year


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So, that's what SG think, what say ForexLive traders? Hot or not?