Trade recommendation: "AUD and NZD: Which one is worst? We go long EUR/NZD"

Author: Eamonn Sheridan | Category: News

An early in the week trade recommendation, this via the folks at Nordea

They enter a long eur, short kiwi trade
  • with an initial target of 1.70.
Citing (in brief):
  • New Zealand surprises point at downside risks for NZD
  • A dovish RBNZ coming up
  • macro data ... dramatic shift of momentum is … most visible in New Zealand, in particular if measured against expectations
  • New Zealand surprise index is now consistent with a 5% quarterly drop in NZD in a month 
  • we still see a risk/scope of a dovish surprise from RBNZ
  • NZD is also still on the strong side of the latest RBNZ projection (1-1.5%), which is another argument in support of a dovish surprise.

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