Enlighten or correct me on this issue: If I notice a pattern in the AUD/USD versus the NZD/USD is there a way to capture it other than going long one pair and shorting the other? Will the AUD/NZD cross essentially give me the same spread?
The movement is exactly the same for the AUD/NZD, computers now remove any mispricings literally at the speed of light. As for spreads, it depends on your broker, but its usually the same (sum of the two spreads). Why don't you just login and check in YOUR broker to be sure?
IF u smart enough, you will realise that there is some benefits by not trading the cross rate. Although it will not be pure arbitrage anomilies but there is inneficiences to be exploited if using spot trading.....thats all i can say. The mispricings between these pairs are non-existent nowadays so you have to look for other anomilies.