Long AUD/NZD, target at 1.14 – NAB

By FXStreet FXStreet (Bali) – NAB is betting long-side in the AUD/NZD market, with a targeted entry of 1.09, a take profit level of 1.14 and a stop loss at 1.07.

Key Quotes

“In the near-term, given the 48% recovery in dairy prices since the trough and expectations of further gains, there is a chance investors become less pessimistic on NZD, especially ahead of the late October OCR Review.”

“Separately, if the present panic about Chinese/EM growth persists, it is likely to weigh more heavily on AUD.”

“The confluence of these two factors could see the cross trade back to the bottom of the 1.09 – 1.14 range.”

“We would look to enter a long AUD/NZD position there, on the expectation that the RBNZ will deliver a 25bp cut in October, and the RBA won’t cut further.”
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Source:: FX Street