Forex Flash: AUD/NZD ready for a tactical rally towards 1.2470 - ANZ

“News today that China destroyed NZ milk cargoes, although not unexpected nor unprecedented, will provide a psychological base in AUD/NZD and coalesce with fundamental factors to see the cross higher in coming weeks,” David Croy & Andrew Salter at ANZ Research said today in a note to clients, while AUD/NZD printed fresh 3-day highs at 1.2280.

“After several weeks of soggy price action, the cross is ripe for a correction, supported by what we expect will be a re-assessment of the market’s monetary policy expectations,” the analysts expand, adding: “We recommend being long AUD/NZD from current levels, looking for a tactical rally back towards 1.2470, with a stop at 1.2140.”