Forex Flash: Watanabe's positioning shift may benefit AUD/NZD - ANZ

Japanese households have recently liquidated 20% of their AUD bonds since November last yeat, but while adding to their NZD bond holdings, says Wei Liang Chang, FX Strategist at ANZ Research.

"Japanese relative positioning in AUD versus NZD bonds thus looks overly skewed on a historical basis. A reversal of bond positioning on the back of the recent rise in AU-NZ yield differentials and overdue profit-taking in NZD bonds can put upward pressure on AUD/NZD" the analyst believes.