TD Research likes short exposure in AUD/USD and NZD/CAD.
"We discuss global macro volatility pricing gaps. Perhaps part of today's mystery lies in the transition from one theme to another in the context of mispriced markets," TD notes.
"We expect more turbulence ahead, underscoring the 1-sigma gap on global vol metrics. A mini-tantrum offers the release valve given the rise in global data surprises. We added fresh AUDUSD shorts and remain short NZDCAD," TD adds.