16 Sep 2014
AUD/NZD to remain on the back foot - Westpac
FXStreet (Bali) - Sean Callow, FX Strategist at Westpac, expects AUD/NZD to remain on the back foot near term.
Key Quotes
"AUD/NZD’s firm rejection at 1.13 should keep the pair on the back foot near term, with risks of a test of key support at 1.0910/30. Relative commodity prices and positioning are weighing for now."
"However, the RBA’s very clear signal of a steady hand into 2015 contrasts with the more dovish inflation outlook at the RBNZ in its Sep MPS, which should support AUD/NZD in Q4. Moreover, we continue to look for a recovery in iron ore prices in coming months, such that AUD/NZD trade with a 1.09 handle should draw buyers looking for a push to 1.14 during Q4."
Key Quotes
"AUD/NZD’s firm rejection at 1.13 should keep the pair on the back foot near term, with risks of a test of key support at 1.0910/30. Relative commodity prices and positioning are weighing for now."
"However, the RBA’s very clear signal of a steady hand into 2015 contrasts with the more dovish inflation outlook at the RBNZ in its Sep MPS, which should support AUD/NZD in Q4. Moreover, we continue to look for a recovery in iron ore prices in coming months, such that AUD/NZD trade with a 1.09 handle should draw buyers looking for a push to 1.14 during Q4."