ANZ analysts suggest that the recent sharp decline in AUD/NZD is providing a tactical trading opportunity as tension in the Middle East eases, relative economics will return to focus, and on this front the cross has overshot.
Key Quotes
“We recommend a tactical long AUD/NZD position at 1.0385, with a target of 1.0620. We would reassess the trade on a break below the March 2019 closing low of 1.0290.”
“The AUD/NZD has fallen precipitously in the last couple of weeks, re-testing the lows of 2019. While to some degree a touch of weakness is justified, given the relative stabilisation in the New Zealand economy alongside sustained weakness in Australia, we think this has now gone too far.”
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