7 Apr 2015
In favour of playing NZD periodically from short side - ANZ
FXStreet (Bali) - The ANZ FX Strategy Team remain in favour of playing NZD periodically from the short side, they note in a note to clients.
Key Quotes
"Another quiet session for NZD today with little domestic factors to drive the currency all week. NZD has been caught up in general USD buying and NZD remains a favourite on the wish lists for shorts for the leverage community, however the old bogey man of yield, resilient growth figures, and an RBNZ in stable mode continue to make it dangerous to be short for any period of time."
"We remain in favour of playing NZD periodically from the short side, when it squeezes to opportune levels, but haven’t seen the signs necessary to expect a larger move, yet."
"On cross while it looks like the RBA on hold decision may be a reason for AUD/NZD to appreciate, the move seems to be more one of patience than of a changing economic situation in Australia, while NZ growth is resilient and Australian growth weak it remains an inopportune time to expect a large increase in AUD/NZD. However, like NZD/USD we view the risks to lie with the next large move in AUD/NZD being one of NZD weakness."
Key Quotes
"Another quiet session for NZD today with little domestic factors to drive the currency all week. NZD has been caught up in general USD buying and NZD remains a favourite on the wish lists for shorts for the leverage community, however the old bogey man of yield, resilient growth figures, and an RBNZ in stable mode continue to make it dangerous to be short for any period of time."
"We remain in favour of playing NZD periodically from the short side, when it squeezes to opportune levels, but haven’t seen the signs necessary to expect a larger move, yet."
"On cross while it looks like the RBA on hold decision may be a reason for AUD/NZD to appreciate, the move seems to be more one of patience than of a changing economic situation in Australia, while NZ growth is resilient and Australian growth weak it remains an inopportune time to expect a large increase in AUD/NZD. However, like NZD/USD we view the risks to lie with the next large move in AUD/NZD being one of NZD weakness."