NZD Slipped by 0.3% in Response to the AUD Move - SocGen

NZD Slipped by 0.3% in Response to the AUD Move - SocGen

Kit Juckes, Research Analyst at Societe Generale, suggests that the NZD has fallen 0.3% in response to the AUD move, so driving AUD/NZD sharply lower.

Key Quotes

“I’d rather be short NZD/USD than AUD/USD around these levels. Market pricing of a rate cut at tonight’s RBNZ meeting (decision 10:00pm BST) is at 40% and has barely moved.

Even more so than in Australia, a dovish signal would likely accompany a decision to leave rates on hold. For the technically-minded, a break below NZD/USD 0.6850 would suggest that the upward-sloping channel we’ve been in for the last three months is breaking.”