7 May 2015
AUD/NZD: Buy on dips - Westpac
FXStreet (Mumbai) - Analysts at Westpac recommends ‘buy on dips’ strategy on the AUD/NZD pair with any dip below 1.05 handle, creating a good buying opportunity.
The team at Westpac notes, "Our short term fair value estimate only dipped to about NZD $1.05 even as spot was overshooting with its run towards parity,"
"With yield spreads now moving back in AUD’s favor and recent trends in relative commodity prices also supportive, we now peg AUD/NZD fair value around NZD $1.0750 - NZD $1.0800."
"It (RBNZ) has held a similar view for quite some time but obviously talking about the kiwi is nowhere near as powerful as raising the prospect of unwinding some of the 2014 tightening. This adds heft to the AUD/NZD recovery,"
"Price action should become more two-way as markets ponder if/whether the RBNZ will actually ease and how long the RBA will be on hold. But any dips under NZD $1.0500 should find eager buyers."
The team at Westpac notes, "Our short term fair value estimate only dipped to about NZD $1.05 even as spot was overshooting with its run towards parity,"
"With yield spreads now moving back in AUD’s favor and recent trends in relative commodity prices also supportive, we now peg AUD/NZD fair value around NZD $1.0750 - NZD $1.0800."
"It (RBNZ) has held a similar view for quite some time but obviously talking about the kiwi is nowhere near as powerful as raising the prospect of unwinding some of the 2014 tightening. This adds heft to the AUD/NZD recovery,"
"Price action should become more two-way as markets ponder if/whether the RBNZ will actually ease and how long the RBA will be on hold. But any dips under NZD $1.0500 should find eager buyers."