TD Research adopts a tactical bullish bias on AUD and NZD. TD is long NZD/CHF* as its ToTW this week targeting a move towards 0.6450.
"The move below 7 in USDCNH should reinforce the move in risk assets, especially the relative performance of equities. The RBA also did AUD no harm overnight, offering some cosmetic changes to their forecast profile. It also reinforces that they are set to remain on hold for the remainder of the year another tailwind for AUD that's attractive on value and positioning," TD notes.
"The recent outperformance of MSCI China/US should benefit the antipodes, where we remain long NZDCHF. We also expect a good NZ employment report today," TD adds.
*Recorded in eFXplus Orders