Analysts at ANZ Bank New Zealand Limited (ANZ) explained that we continue to like being short NZD.
Key Quotes:
“The domestic picture continues to deteriorate and we think that global conditions (with liquidity tightening and global growth slowing towards trend, if not below) will act as a key headwind for cyclical currencies.”
“However, the challenge is picking how to express that. We are a little reluctant here to be short against the greenback, which is looking relatively fairly priced against fundamentals (although the global data over the next couple of weeks will help determine how true that is).”
“Instead, we like being long AUD/NZD (short NZD/AUD).”
“In some ways it is a case of who is the ugliest duckling, but we think that at current levels in this cross, the NZD wins that one.”
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