HSBC Tactician: buy AUDNZD: FXWW

From the FXWW Chatroom – With all the risks in the mix for November, it would be tempting to look to the safe
haven plays but with so little clarity on how issues like Brexit or trade wars might
develop, it is more about volatility than a directional call on the safe havens. It is also
not helpful that the CHF appears to have abandoned its safe haven allure. And so we
turn to the crosses this month for our favoured trade. We look for upside in AUD-NZD
on the basis of a mismatch with rate differentials and the AUD’s better position to
capitalise on China’s domestic stimulus as well as any progress in trade talks.
Buy AUD-NZD @ 1.0840, target 1.1100, stop at 1.0690.

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