Our best spreads and conditions
Learn more
Forex News
Back
Sep 22, 2015
AUDNZD: Strength ahead, dips likely to offer buying opportunity - Westpac
FXStreet (Delhi) – Sean Callow, Research Analyst at Wespac, suggests that AUD/NZD has overwhelmingly traded 1.09-1.14 since end-June, mostly showing little inclination to break out. However, the RBNZ’s Sep MPS reinforced our expectation that ranges will ratchet higher in coming weeks and months.
Key Quotes
“While we expect a steady hand at the RBNZ’s 29 Oct policy review, any fall in AUD/NZD in response should be viewed as a buying opportunity, with the OCR ultimately likely to fall considerably further than current market pricing.”
“In contrast, the RBA should keep the cash rate steady into 2016, supporting AUD with optimism over stronger growth ahead. Short term we would look to buy dips in AUD/NZD to the 1.11 handle, targeting 1.1430/60 multi-week and above 1.16 multi-month.”
Key Quotes
“While we expect a steady hand at the RBNZ’s 29 Oct policy review, any fall in AUD/NZD in response should be viewed as a buying opportunity, with the OCR ultimately likely to fall considerably further than current market pricing.”
“In contrast, the RBA should keep the cash rate steady into 2016, supporting AUD with optimism over stronger growth ahead. Short term we would look to buy dips in AUD/NZD to the 1.11 handle, targeting 1.1430/60 multi-week and above 1.16 multi-month.”