TD Research added a short AUD/NZD position to its recommendation portfolio ahead of the RBNZ meeting and maintains the exposure post the meeting targeting a move towards 1.05.
"For AUDNZD, we note a few things that appear off in the context of the market backdrop. While AUD still ranks highly on MRSI, we note that NZD's signal has been improving recently.
That comes against a backdrop where our short-term valuation models point to a move lower in AUDNZD. The RBNZ delivered on our hawkish expectations," TD notes.