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6 Aug 2013
Flash: AUD/NZD still a shorted candidate – UBS
FXstreet.com (New York) - In light of the recent drama out of New Zealand, its worth noting that Chinese dairy imports alone directly contribute about 1.4% to NZ GDP, notes Research Analyst Gareth Berry at UBS.
Key quotes
“The impact is greater still when we allow for the distribution of co-operative profits to the NZ farming community. We remain short AUD/NZD - especially ahead of Tuesday's RBA policy decision and Thursday's Australian employment report.”
However, as a precaution, we took some profit on our AUD put / NZD call trade recommendation overnight by converting it to a put spread, with 1.1000 the downside strike.”
“We now await the next fortnightly NZ dairy auction, with results due on
Tuesday at approximately 14:00-15:00 GMT. The New Zealand dollar is likely to suffer a further sell-off if dairy demand drops sharply.”
Key quotes
“The impact is greater still when we allow for the distribution of co-operative profits to the NZ farming community. We remain short AUD/NZD - especially ahead of Tuesday's RBA policy decision and Thursday's Australian employment report.”
However, as a precaution, we took some profit on our AUD put / NZD call trade recommendation overnight by converting it to a put spread, with 1.1000 the downside strike.”
“We now await the next fortnightly NZ dairy auction, with results due on
Tuesday at approximately 14:00-15:00 GMT. The New Zealand dollar is likely to suffer a further sell-off if dairy demand drops sharply.”