Credit Agricole CIB Research likes buying dips in AUD and NZD against the EUR. CACIB holds a short EUR/AUD in its recommendation portfolio.
"We have been surprised by the AUD and NZD’s resilience to higher UST yields, however, and have upgraded our end-2021 forecasts for AUD/USD from 0.78 to 0.80 and for NZD/USD from 0.74 to 0.76," CACIB notes.
"We expect bouts of risk aversion with rises in UST yields to continue, but to represent opportunities to buy the Antipodeans on dips as the Fed remains dovish. But, we prefer using EUR as a funding currency over the USD, given the strong recovery occurring in the US economy and the Eurozone’s recovery likely to lag that of most of the rest of the G10," CACIB adds.