This via ANZ following the Reserve Bank of New Zealand yesterday
In brief:
RBNZ disappointed the market today
- we continue to think that they will ease before the RBA
The squeeze in positioning provides a tactical opportunity to buy the AUD/NZD
- The trade also provides a good value, lower beta way to trade a more positive risk environment.
- The AUD will out-perform on an extension of the trade war deadline of 1 March.
Their reco is:
·Buy AUD/NZD at 1.0400
- targeting 1.07
- We reassess at 1.03
