Citi discusses NZD outlook and looks to add short exposure via selling rallies in the near-term.
"Well played Adrian. Pressure will remain on the flightless one especially now Powell backed the Fed away from negative rates. For much the same reasons as in AUD, the cost of victory is yet to be determined," Citi notes.
The only reason this isn’t lower is the market went into the MPS max short. So being bearish as both antipodeans get hit, it wouldn’t surprise if we had liquidity inspired liquidation on weak hands that present great opportunities to add to shorts.” Citi adds.