Analysts at Nomura noted that AUD underperformed this week, and we think it prudent to close out of our long AUD/NZD positions.
"Communications from the Reserve Bank of Australia (RBA) have turned more cautious since early May in our view."
"This includes comments from the RBA governor about wanting the RBA to be a “source of stability and confidence”, increasing the focus on risks to the RBA’s benign central case, and a speech this week that market participants have interpreted as suggesting that the cash rate may be kept unchanged (rather than go up) for longer than previously expected."
"Lacklustre China data and weak Australian data are turning market sentiment more negative on the AUD."
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.