2 Sep 2013
Flash: Stay short AUD/NZD for a target of 1.10 - UBS
FXstreet.com (Barcelona) - UBS sees the recent recovery off multi-year lows on the AUD/NZD as a fresh selling opportunity, and still look for a target of 1.10.
Key Quotes
"Risks of a large-scale interruption to NZ dairy exports on contamination fears have already melted away."
"Likewise, the RBNZ's decision to introduce mortgage restrictions is just a temporary alternative to a rate hike and is unlikely to support the cross for long."
"Being short AUDNZD offers a welcome immunity to each twist and turn of the Fed tapering debate. When Fed tapering actually gets underway however, switching into AUDUSD shorts would potentially offer even greater downside potential."
Key Quotes
"Risks of a large-scale interruption to NZ dairy exports on contamination fears have already melted away."
"Likewise, the RBNZ's decision to introduce mortgage restrictions is just a temporary alternative to a rate hike and is unlikely to support the cross for long."
"Being short AUDNZD offers a welcome immunity to each twist and turn of the Fed tapering debate. When Fed tapering actually gets underway however, switching into AUDUSD shorts would potentially offer even greater downside potential."