Sceptical Of AUDNZD Bounce
We have been short AUDNZD in one form or another since Feb 1st, and remain so despite signs that further downside may take even longer to materialise. This was always going to be a slow-burning trade, and we remain patient. The latest bounce in the cross follows evidence that property cooling measures in New Zealand may already be working. Weekly housing loan approvals have dropped by over 7% since the RBNZ introduced loan-to-value mortgage restrictions on Oct 1.
Read the full report: UBS