CACIB: Go long NZDUSD

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The NZD enjoyed some buying interest last week, predominantly driven by IMM flows. Our FX flow data points at banks and hedge funds inflows, as well as corporates and real money investors outflows.

NZD/USD’s fair value rose from 0.5850 to 0.5870 due to rises in the NZ- US short-term rates spread, global equities & the outperformance of US equities by Asian equities. NZD/USD’s is more than 1.5 standard deviations undervalued. The FAST FX model has triggered a long NZD/USD trade with a stop-loss of -2.61% & a take-profit level of 0.5870.

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