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LIVE DESK·Global markets desk·Last updated 14s ago
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Bank of America Recommends Selling AUD/NZD on Policy Divergence

Bank of America has recommended shorting the Australian dollar against the New Zealand dollar, citing an anticipated divergence in monetary policy.

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Sophie Laurent · FX & Rates Desk · 18 Aug 2026 · 1 min read
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Bank of America Recommends Selling AUD/NZD on Policy Divergence

Bank of America has advised investors to sell the AUD/NZD currency pair, pointing to an expected divergence in the monetary policy trajectories of the Reserve Bank of Australia and the Reserve Bank of New Zealand.

The trade recommendation is driven by shifting macroeconomic outlooks between the two neighboring economies, though specific targets and risk parameters accompanying the strategy were not detailed in the initial advisory.

This article was produced with AI assistance and edited by a Finance Review Daily journalist.
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Written by
Sophie Laurent
FX & Rates Desk

Sophie covers currency markets and central bank policy across Europe, with a focus on how rate decisions ripple through FX pairs. She has been tracking the ECB's policy path since the start of the current easing cycle.

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