It's becoming cheaper and cheaper for Kiwi's to come over to Australia, with AUD/NZD at 1.1070 (at the time of writing). My year-end target was 1.15 and that was when the pair was around 1.25! Currency markets are being driven by yield spreads and central bank policy divergence and AUD/NZD has been one of the macro communities' favourite trades. At 11:30 today we get the Australian Q3 GDP and while the consensus is calling for 0.7% on the quarter (range of 1.2% to 0.5%) and 2.6% on the year, we feel there are very modest upside risks here. Still, bounces in this pair should be sold given the very clear and strong trend.