If a 12-month AUD/NZD swap is quoted 53/47, which of the following statements would you consider to be correct?
A. 12-month AUD rates are higher than 12-month NZD rates
B. Spot AUD/NZD will be higher by approximately 50 points in 12 months
C. 12-month AUD rates are lower than 12-month NZD rates
D. The AUD yield curve is positive, whilst the NZD curve is negative
Answer:A
If a 12-month AUD/NZD swap is quoted 53/47, which of the following statements would you consider to be correct?
A. 12-month AUD rates are higher than 12-month NZD rates B. Spot AUD/NZD will be higher by approximately 50 points in 12 months C. 12-month AUD rates are lower than 12-month NZD rates D. The AUD yield curve is positive, whilst the NZD curve is negative