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