Policy divergence can be a powerful strategy for FX trader and AUDNZD often comes on the radar as one to look at here - We can look at the Aussie cash rate futures, or 3-year Aussie govt bond and see this at 14bp – more easing from the RBA is coming in November, but its priced. The RBNZ are talking negative rates, and tiering this system – they will go hard, and front load monetary stimulus. The technicals and flow of capital are aligned, with price breaking the bear channel and stochastic momentum moving higher.
We can the straddle range (pink shaded area), with the upper range married with the 11 September swing high, so I’ll be targeting here. A break and I would look to add to longs. Happy to reduce through 1.0820
We can the straddle range (pink shaded area), with the upper range married with the 11 September swing high, so I’ll be targeting here. A break and I would look to add to longs. Happy to reduce through 1.0820