NZD/AUD finding 0.88 sticky - Westpac
In view of Imre Speizer, Research Analyst at Westpac, the NZD/AUD cross is stuck in a 0.90-0.91 range for now, but they wouldn’t rule out a retest of the recent low at 0.8855.
“Fundamentally, though, we don’t see a strong case for a push much lower, our valuation models saying it’s currently fair.”
“3 months ahead: We continue to target 0.88 by year end. Australia’s key commodity prices are well within the past 2 months’ range but risk appetite is becoming more interesting, showing some cracks after a very placid period. Both the RBA and RBNZ are likely to be on hold for a long time, suggesting no major interest rate advantage to either currency.”