AUD/NZD: 4 reasons to buy the pair; target 1.15 (Deutsche Bank)

AUD/NZD offers a good buying opportunity with 1.15 in sight. Deutsche Bank lists 4 reasons:

1- Employment figures. DB expects that the Australian employment report will be above consensus by posting 15,000 new jobs in July, with an unemployment rate unchanged at 6%.

2- Although the RBA sounded less dovish this week, DB think the markets will begin to integrate into prices a 0.50% key rate reduction over the next two months.

3- Commodity prices. Although the price of steel remains under pressure, DB believes that this remains both a bull and bear market.

4- Positioning. DB notes that although KIWI shorts were reduced by 30% since early July, AUD short positions increased by 130%, enabling a significant squeeze.