AUDNZD potential for a sharp and relatively rapid reversal - BNPP
|In view of the Steven Saywell, Research Analyst at BNP Paribas, recent price action in foreign exchange markets has produced several divergences from underlying fundamentals, and they think there is potential for a sharp and relatively rapid reversal and one such example is AUDNZD, which now appears extended.
Key Quotes
“We initiate a short recommendation via options, which further benefits from the low level of volatility on the cross and the potential for a relatively timely fall. We target a return to 1.05 over the coming weeks (from 1.0930). We recommend buying a 2 month AUDNZD 1.0732 (25d) put at 0.43% of AUD notional.”
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