NZD/AUD cross to target sub-0.9100 this week - Westpac

Imre Speizer, Research Analyst at Westpac, explains that the NZD/AUD cross has resumed its trend decline and targets sub-0.9100 this week.

Key Quotes

“Relative interest rates, relative commodities, and risk sentiment all favour the AUD over the NZD in the near term.”

“The highlight of this week’s event calendar was the RBA statement today, the tone slightly more upbeat than it was in April. Still due is the Mar trade balance (Thu).”

“3 months ahead: While fair value for this cross is around 0.88, we don’t expect to see that anytime soon. It would take a sharp rebound in iron ore or coal prices, and a calmer geopolitical environment, to see a resumption of the Feb/Mar decline to below 0.90.”