NZD/AUD: Promising for a Move into the 0.92s this Week - Westpac

NZD/AUD: Promising for a Move into the 0.92s this Week - Westpac

Imre Speizer, Senior Market Strategist at Westpac, suggests last week’s NZD/AUD reversal from 0.9500 to 0.9310 is promising for a move into the 0.92s this week.

Key Quotes

“The RBA’s lack of any guidance on Tue was AUD supportive, but we must await the RBNZ’s own action and guidance on Thu before we can be confident about the cross declining much further this week.

3 months: We target 0.90 multi-month because the cross is trading well above fair value implied by relative interest rates, commodities and risk sentiment. A major risk to this view would be a global shock (for example from China), which typically affects the AUD more than the NZD.

1 year: Our economic fundamentals based forecast is 0.89.”