AUD/NZD: Scope to dip towards 1.06 during the month ahead – Westpac

AUD/NZD has been under continuous selling pressure since June 14. Economists at Westpac expect the pair to drop towards the 1.06 level in July. Nonetheless, they forecast AUD/NZD at 1.09 by end-2021.

AUD/NZD to recover towards 1.09 by year-end

“Near-term risks remain negative, with RBA vs RBNZ trajectory, and trade and political tensions between Australia and China, weighing on the cross and dominating Australian commodity outperformance.” 

“There’s potential for a decline towards 1.06 during the month ahead.” 

“By year-end, though, we expect to see it higher at 1.09+. Elevated global risk sentiment (amid vaccine deployment) and solid growth in China should benefit the AUD more than the NZD.”