TD Research discusses AUD outlook and adopts a buy-on dips bias in AUD/USD, and AUD/NZD. TD is long AUD/NZD* strategically as as one of its top trades for 2020.
"AUD remains topical following the collapse to start the year. It now trades with a nice discount on our metrics, which, when coupled with positioning, suggests much bad news sits in the price. We like buying on dips in the 0.6800/50 zone, reflecting a reduction of this risk premium," TD notes.
"We also note that AUDNZD now trades at a 2.5% discount to HFFV, offering attractive entry levels," TD adds.
*Recorded in eFXplus Orders