29 Jan 2015
AUD/NZD risks titled towards 1.10 - Westpac
FXStreet (Guatemala) - Sean Callow, analyst at Westpac explained that AUD/NZD record lows under 1.04 should remain firmly intact.
Key Quotes:
"Pair arguably undervalued, even with markets pricing in a resumption of RBA rate cuts."
"We view risks on the multi-week/month outlook as tilted towards 1.10. This would be more of a correction of excessive kiwi strength around the turn of the year rather than a particularly bullish AUD view."
"The RBNZ’s openness to a rate cut is likely to chip away at NZD multi-month."
"If the RBA cuts the cash rate next week, any dip to 1.06 would be tempting for bargain hunters, with AU-NZ 2 year spreads likely to support AUD/NZD."
Key Quotes:
"Pair arguably undervalued, even with markets pricing in a resumption of RBA rate cuts."
"We view risks on the multi-week/month outlook as tilted towards 1.10. This would be more of a correction of excessive kiwi strength around the turn of the year rather than a particularly bullish AUD view."
"The RBNZ’s openness to a rate cut is likely to chip away at NZD multi-month."
"If the RBA cuts the cash rate next week, any dip to 1.06 would be tempting for bargain hunters, with AU-NZ 2 year spreads likely to support AUD/NZD."