8 Jul 2014
AUD/NZD: Upside potential - Westpac
FXStreet (Bali) - Sean Callow, FX Strategist at Westpac, notes that from a multi-week outlook, the AUD/NZD has some interesting upside potential.
Key Quotes
"The RBNZ’s still-hawkish statement in June punctured the multi-week AUD/NZD upswing, later extended by some soft Australian data and reconsideration of the RBA policy outlook."
"However, we still expect the RBA’s next move to be a hike, while the kiwi should come under pressure on or before 24 July when the RBNZ should hike but indicate a pause. Softer dairy prices should also weigh. Support around AUD/NZD 1.0650 should continue to hold, with 1.0900 the likely top of the range multi-week."
Key Quotes
"The RBNZ’s still-hawkish statement in June punctured the multi-week AUD/NZD upswing, later extended by some soft Australian data and reconsideration of the RBA policy outlook."
"However, we still expect the RBA’s next move to be a hike, while the kiwi should come under pressure on or before 24 July when the RBNZ should hike but indicate a pause. Softer dairy prices should also weigh. Support around AUD/NZD 1.0650 should continue to hold, with 1.0900 the likely top of the range multi-week."