ANZ: Long AUD/NZD as a medium-term trade for 2025 ...Middle East

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ANZ: Long AUD/NZD as a medium-term trade for 2025
ANZ recommends going long AUD/NZD in early 2025, anticipating AUD outperformance driven by diverging monetary policies, growth dynamics, and New Zealand's diminishing carry advantage.Key Points:Year-End Weakness in AUD/NZD:Seasonal factors and risk sentiment tend to drive AUD/NZD lower into year-end.Strong NZD demand from seasonal exporter flows in November and December typically supports the NZD.Medium-Term Trade Opportunity:Current levels around 1.08 present an opportunity to establish long positions in AUD/NZD.Target range: 1.10 and above in 2025.Monetary Policy Divergence:ANZ expects the RBNZ to cut rates earlier and more aggressively than the RBA:RBNZ: 50bp cut expected in February 2025

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