Short NZDUSD and AUDUSD as commodity exporter currencies still vulnerable – BNPP

By FXStreet FXStreet (Delhi) – Research Team at BNP Paribas, notes that the AUD has been resilient to the USD’s strength this week, but BNP Paribas STEER™, our short-term fair-value model, suggests AUDUSD is slightly overvalued and should be trading closer to 0.70 given how key financial market drivers have been performing.

Key Quotes

“We remain short AUDUSD in our options recommendation portfolio. On the data front, Australia’s Q3 wages printed in line with expectations with annual wage growth steady at a subdued pace of 2.3%.”

“In New Zealand dairy prices declined 7.9% in yesterday’s auction, representing a third straight decline prices. We expect further NZDUSD weakness going forward and remain short NZDUSD spot targeting a decline to 0.6240.”

“Lastly, we also remain bearish NOK despite the better than expected Q3 GDP numbers released Wednesday, with weak domestic demand still consistent with December Norges Bank easing.”
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Source:: FX Street