UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data 
Mexico's Undervalued Equity Market Offers Long-Term Investment Potential 
Lithium Market Poised for Recovery Amid Supply Cuts and Rising Demand 
US Futures Rise as Investors Eye Earnings, Inflation Data, and Wildfire Impacts 
U.S. Banks Report Strong Q4 Profits Amid Investment Banking Surge 
Fed May Resume Rate Hikes: BofA Analysts Outline Key Scenarios 
Goldman Predicts 50% Odds of 10% U.S. Tariff on Copper by Q1 Close 
U.S. Treasury Yields Expected to Decline Amid Cooling Economic Pressures 
Elon Musk’s Empire: SpaceX, Tesla, and xAI Merger Talks Spark Investor Debate 
Global Markets React to Strong U.S. Jobs Data and Rising Yields 
AUDNZD major downtrend has been drifting in the consolidation phase and jerky in short run, drop to 1.0989 levels (recent lows).
For now, continues to consolidate between 1.1000 and 1.1100.
AUDNZD in medium-term perspective: A resumption of the trend rise which started in June should test 1.13, contingent on AU economic data remaining supportive, commodity prices recovering, risk sentiment remaining elevated, and NZ politics weighing on the NZD.
On the flip side, expect the 1.0809 areas which can’t be disregarded if iron ore remains under downward pressure. A retest of the 1.10 area is seen in April is also possible if iron ore’s rally since mid-June continues and global risk sentiment remains elevated.
We’ve seen the bearish impact on underlying AUDNZD movement in the major trend. Technically, the price behavior has been weaker with both leading as well as lagging indicators are bearish bias.
Contemplating above fundamental developments and the ongoing technical trend of this pair, to participate in the puzzling swings, we advocate option strips strategy that contains 3 legs of vega longs (2 puts plus 1 call). The option strips that likely to fetch desired yields regardless of the trend but more potential on southwards by arresting bearish risks.
As shown in the diagram, the execution goes this way: Initiate 2 lots of 1m longs in Vega put options, simultaneously, add 1 lot of Vega call options of the similar expiry, the strategy is executed at net debit and net delta of -0.46.
Please be noted that the strategy is likely to derive positive cashflows regardless of the underlying spot FX moves with more potential on the downside.
Currency Strength Index: FxWirePro's hourly AUD spot index is flashing at 66 levels (which is bullish), while hourly NZD spot index was at shy above -23 (which is neutral) while articulating (at 06:48 GMT). For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex.
FxWirePro launches Absolute Return Managed Program. For more details, visit:
