ANZ - "News today that China destroyed NZ milk cargoes, although not unexpected nor unprecedented, will provide a psychological base in AUD/NZD and coalesce with fundamental factors to see the cross higher in coming weeks
After several weeks of soggy price action, the cross is ripe for a correction, supported by what we expect will be a re-assessment of the market’s monetary policy expectations
We recommend being long AUD/NZD from current levels, looking for a tactical rally back towards 1.2470, with a stop at 1.2140."