FXStreet (Córdoba) – The UBS analyst team advise investors to stay on the sidelines with AUD/NZD and wait for the outcome of the Reserve Bank of Australia meeting next week.
Key Quotes
“We had initiated a long-AUDNZD trade on 14 October at 1.075, targeting 1.18 with stop-loss 1.05. The pullback in the AUDNZD has triggered our stop-loss level”.
“Since opening the trade the NZD has been broadly stable following a pause in the Reserve Bank of New Zealand’s easing cycle and AUD has shifted lower due to a weaker-than-expected Australian CPI result. This raised the likelihood of another rate cut from the Reserve Bank of Australia as early as 3 November”.
“For the time being, we advise investors to stay on the sidelines with this trade and wait for the outcome of the Reserve Bank of Australia meeting next week, before entering new trades”.
(Market News Provided by FXstreet)