AUDNZD Back In Play
The AUDNZD downtrend resumed overnight, having stalled somewhat over the past month. We have been short the cross in one form or another as a trade recommendation since Feb 1, and we still see scope for further slippage towards 1.10 by year end.
There was a minor shift in rhetoric accompanying the RBNZ’s unchanged policy decision. The bank served notice that OCR hikes “will likely be required next year”. This is arguably a hawkish tilt given previous rhetoric indicated only that rate hikes “may well be needed” next year.
Read the full report:UBS