Mark McCormick, North American Head of FX Strategy at TD Securities, is recommending to enter a long AUDNZD position (spot reference: 1.0520), for the target price of 1.0950, while maintaining a stop-loss of 1.0300.
- Given the price action, it is time to determine whether the next move is a sustainable break below 1.05 or a good buying opportunity to position for a retest of 1.10. We choose the latter.
- Front-end spreads, for instance, argue the cross should be trading above 1.08 on an 18m look back window. That also dovetails with the signal from relative yield curves (2s10s). This pair also cares a lot about terms of trade. The correlation has broken down a bit in the short-run but a longer time series history also implies a level around 1.09.
- Our China-based factor model also puts AUDNZD around 1.06, which could start to benefit if growth and trade tensions start to improve. Finally, our implied-CTA model also implies that the market is leaning short AUDNZD.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.