AUD/NZD: Opening longs – TDS
Mazen Issa, a senior FX strategist at TD Securities, is bullish on the Aussie dollar and sets the level around 1.035 as the point to buy the AUD/NZD pair.
“We have already dabbled in tactical AUD longs vs GBP. AUD should regain its footing vs. low funders should risk stabilize further. We now think a case is building for AUD/NZD topside as the pair managed to hold crucial support near 1.03.”
“NZD remains starved of foreign capital flows. Meanwhile, AUD has benefited from an LNG boom that has helped to push a trade surplus.”
“We will look to buy AUD/NZD on a dip towards 1.0350/1.0400. The 200dma at 1.0555 will be the gateway to a larger move towards 1.08/1.09.”