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17 Jul 2013
Flash: More juice left in the AUD/NZD sell-off - BNZ
FXstreet.com (Barcelona) - The cyclical Australian vs New Zealand fundamentals remain strongly favourable for the former, with Mike Jones, Currency Strategist at Bank of New Zealand, forecasting 1.13 by year end.
As Jones notes: "The cross has come a long way in a short space of time. Seven cents in fact, from the 1.2650 highs of mid-March. Given this, many market participants are starting to wonder if the downtrend is close to topping out."
In short, Jones believes "there is more juice left in the rally. Our Q3 forecast is 1.1560, with 1.13 expected by year-end. We recently actioned this view by entering a strategic AUD/NZD short position from 1.1813."
As Jones notes: "The cross has come a long way in a short space of time. Seven cents in fact, from the 1.2650 highs of mid-March. Given this, many market participants are starting to wonder if the downtrend is close to topping out."
In short, Jones believes "there is more juice left in the rally. Our Q3 forecast is 1.1560, with 1.13 expected by year-end. We recently actioned this view by entering a strategic AUD/NZD short position from 1.1813."