**Historic series of Citi terms of trade indexes found in the Macro Walk report, subscribe at cablefxm.co.uk/reports
Antipodes terms of trade differential continued to favor the AUD as it extends past 65.0, levels not seen in more than a decade. The AUD/NZD spot is set to close higher for the sixth consecutive month in August, last 1.1175. However, the differential points to a much higher exchange rate
The Aussie is historically seen as an FX proxy to risk sentiment, the recent spike in volatility can certainly hurt the trade in the coming weeks. If risk sentiment were to stabilize, fundamentals support a stronger AUD
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