Charts Of The Day: AUD/NZD, Singapore Equities, Chinese Banks

We believe that AUD/NZD may be due a reversal, having moved aggressively in the kiwi's favour over the past three months. Technically, the sell-off appears to have lost steam, with trendline support at AUD1.2553/NZD holding well. Moreover, bullish divergence in the relative strength index suggests that a period of Aussie outperformance could be in the offing. The countries' relative interest rate dynamics reinforce our tactical FX view. While the forward rate agreement (FRA) market is now pricing in 20bps of cuts in Australia by end-2011 (strengthening our dovish stance), the NZD FRA market is gunning for a massive 57bps of

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