AUD/NZD: Sell on rally towards 1.09 – JP Morgan

In its latest report, seen early Tuesday in Asia, JP Morgan suggests selling AUD/NZD unless it breaks the monthly resistance line, currently around 1.0900. However, the bank is not clear on the factors, other than the technical signals, that will trigger the selling.

Key quotes

Short-term market is very long the cross.

Positive local news from Australia with regards to virus numbers in Victoria coming down and as USD/CNH continues to find sellers on rallies.

NZD should be much lower in a year as the RBNZ likely go to negative rates.

Also read: AUD/NZD Price Analysis: Bulls seeking a break and restest of overhead resistance