15 Jan 2014
Flash: AUD/NZD; remain short? - Rabobank
FXstreet.com (Guatemala) - Jane Foley, Senior Currency Strategist at Rabobank favours a short position in AUD/NZD still.
Key Quotes:
“For some months we have been favouring a short AUD/NZD position. In December, the RBNZ stated that “looking ahead, demand will be boosted by high export commodity prices, low interest rates, momentum in the housing market, and continued reconstruction in Canterbury””.
“It is possible that the RBNZ could hike interest rates as soon as April, however, the strength of the NZD, the outlook for household debt and the trajectory of the CPI index will be crucial in determining how soon the rate hike is”.
“While there is a lot of optimism built into the price of the NZD already, we maintain that the NZD can make further gains vs. the AUD in the months ahead. Yesterday, AUD/NZD closed below the recently formed double bottom at 1.0733/6. Next supports lie at 1.0648 and 1.0432”.
Key Quotes:
“For some months we have been favouring a short AUD/NZD position. In December, the RBNZ stated that “looking ahead, demand will be boosted by high export commodity prices, low interest rates, momentum in the housing market, and continued reconstruction in Canterbury””.
“It is possible that the RBNZ could hike interest rates as soon as April, however, the strength of the NZD, the outlook for household debt and the trajectory of the CPI index will be crucial in determining how soon the rate hike is”.
“While there is a lot of optimism built into the price of the NZD already, we maintain that the NZD can make further gains vs. the AUD in the months ahead. Yesterday, AUD/NZD closed below the recently formed double bottom at 1.0733/6. Next supports lie at 1.0648 and 1.0432”.