BNP Paribas is short on AUD/NZD
NZD/USD slid to the levels close to $0.8400 after the Reserve Bank of New Zealand indicated on July 23 a pause in its interest rate hike cycle. Analysts at BNP Paribas think that investors reduced NZD longs and now this currency seems oversold.
The specialists note that the data releases have helped NZD/USD rise from support levels around $0.8400/50, while AUD/NZD has retraced from its pivotal resistance level at 1.1050. New Zealand retail sales increased 1.2% q/q in Q2 vs. 1.0% growth expected. BNP Paribas says that robust employment growth, consumer confidence and ongoing house price appreciation are likely to have contributed to the firm number.
Taking into account these developments, BNPP maintains a short AUD/NZD position, targeting 1.07, with a stop at 1.1065.
Chart. Daily AUD/NZD