AUD/NZD to continue to head downwards – BNP Paribas

FXStreet (Bali) – Following last week’s call to short AUD/NZD, the FX Team at BNP Paribas remains optimistic that the pair has further room to fall as relative positioning adjusts.

Key Quotes

“The RBA is likely to maintain a cautious tone at its 2 June policy meeting, although rhetoric on the AUD is unlikely to turn more aggressive following its recent decline and a stabilisation of Australia’s commodity prices.”

“However, bearish AUD positioning remains very light at a score of only -2 according to our analysis. This provides scope for the AUD to weaken further, in our view.”

“Meanwhile, we view the market as too pessimistic on the NZD heading into the 10 June RBNZ policy meeting with net NZD positioning at a score of -36. We continue to favour a short AUDNZD, targeting 1.0340, entered at 1.0780 on 21 May.”

Following last week’s call to short AUD/NZD, the FX Team at BNP Paribas remains optimistic that the apir has further room to fall as relative positioning adjusts.

(Market News Provided by FXstreet)