🔺🔻Antipodes Starting to Look Overextended: Cable FX Macro

• Looking at a range of metrics, including the spot deviation vs its 20DMA, the aussie and the kiwi are starting to check for overextended rallies. The dollar has been trading softer and losses extended on Tuesday session, at these levels, it is worth asking how much of the negatives are priced in

• A simple scan on technicals flag the antipodes and scandies as the most overextended vs the USD. However, scandies are trading within their respective Bollinger bands, while the AUD and NZD have breached these. Also, antipodes are just a blink from overbought levels on the RSI

• While the current environment supports these high-yielders, the current deviation from their historic averages are worth noting. Dollar positive, risk off innovations leave these two currencies vulnerable to a mild correction.