1 Oct 2015
AUD/NZD expected to re-test 1.1400 – Westpac
FXStreet (Edinburgh) - In the view of Sean Callow, Strategist at Westpac, the Antipodean benchmark could return to the 1.1400 handle in the medium term.
Key Quotes
“We have been mostly bullish on AUD/NZD since the RBNZ started cutting rates in June”.
“The pair was 1.0780 before the 11 June easing, jumping quickly to 1.10. Since then the cross has traded mostly 1.0950 - 1.1400”.
“This week’s retreat back below 1.10 was unexpected and a little unsettling for our bullish view”.
“Our call for a steady RBA hand over the next year along with our forecast of a 2% RBNZ cash rate (market pricing is no lower than 2.40%) leaves us clearly expecting AUD/NZD to return to at least 1.14 multi-month”.
Key Quotes
“We have been mostly bullish on AUD/NZD since the RBNZ started cutting rates in June”.
“The pair was 1.0780 before the 11 June easing, jumping quickly to 1.10. Since then the cross has traded mostly 1.0950 - 1.1400”.
“This week’s retreat back below 1.10 was unexpected and a little unsettling for our bullish view”.
“Our call for a steady RBA hand over the next year along with our forecast of a 2% RBNZ cash rate (market pricing is no lower than 2.40%) leaves us clearly expecting AUD/NZD to return to at least 1.14 multi-month”.