AUD/USD retains upward momentum, next target at 0.7695 - Westpac

Imre Speizer, Head of NZ Strategy at Westpac, shares his market outlooks.

AUD/USD 1 day: Retains upward momentum, the next technical target 0.7695 (15 Dec high), as long as the USD remains restrained.

AUD/USD 1-3 month: We look for AUD/USD to fall to 0.76 during the next few months, so long as markets continue to price further Fed interest rate rises in 2018, along with a neutral RBA outlook deep into 2018 and commodity prices remaining around recent levels (14 Nov)

NZD/USD 1 day: Retains upward momentum, the next technical target 0.7035 (15 Dec high), as long as the USD remains restrained. NZ GDP data poses major event risk though.

NZD/USD 1-3 month:  If the RBNZ remains firmly on hold, as we expect, and the US dollar rises on expectation of further Fed interest rate rises in 2018, then NZD/USD should fall to 0.67 over the next few months. (13 Dec)

AUD/NZD 1 day: Potential for a retest above 1.1000, particularly if NZ GDP disappoints today.

AUD/NZD 1-3 month: The corrective decline which started in late Oct could reach 1.08, but should eventually give way to a retest of 1.12 as long as AU economic data remains supportive and AU commodity prices outperform (18 Dec)