From the FXWW Chatroom – Week October 5 – October 9
G10 Trade Idea: Long NZD/Short AUD
Rationale: AUDNZD has broken the important 1.09 technical level, which should open up scope for a test of 1.075. We expect a good dairy auction outcome in NZ this week to provide an additional NZD supportive catalyst. Meanwhile, we see a chance that the RBA’s statement may echo the more dovish tone on China’s growth outlook of the last set of minutes.