NZD: Long AUD/NZD & Short NZD/CAD Attractive Relative-Value Trades M-Term

Societe Generale Cross Asset Strategy Research thinks that around current levels selling NZD on the crosses against AUD and CAD ( long AUD/NZD, short NZD/CAD) are good relative-value trades over the medium-term.

"Sterling has no obvious source of support other than its valuation, and CAD, AUD and NZD are all held back by the Chinese slowdown. Across all of EM, there are political, trade, and China-related growth concerns.

Long AUD/NZD and short NZD/CAD are relative value trades, that have appeal. Bigger overall themes that drive the dollar will have to wait," SocGen argues/