Australian Dollar Cross Pick 03.14.2012
We’re finally seeing a short-term correction in the AUDNZD and we will look for another opportunity to sell the pair as the fundamentals continue to reinforce a bearish outlook for the pair. I would like to sell the sell the aussie-kiwi around the February high (1.2962) as I expect to see the pair carve out a lower top in March, and may get a little aggressive with this trade as the pair looks poised to mark a fresh low for the year. Indeed, we will stick to the sidelines as the overnight rally struggles to push the exchange rate back above the 50-Day SMA (1.2906), but we may get an opportunity to short the pair next week as the economic docket is expected to reinforce a weakened outlook for Australia.
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