NZD/AUD could reach 0.92 - Westpac

The NZD/AUD cross found a short-term bottom just below 0.90, and could reach 0.92 during the week ahead, although much will depend on the outcome of the NZD election, suggests Imre Speizer, Research Analyst at Westpac.

Key Quotes

“The event calendar this week goes very quiet, with no major releases. RBA Sep minutes are due Tue. RBA’s Ellis speaks to economists on Wed.”

“3 months ahead: Fair value for the cross is around 0.89. We see that as a fair target for the remainder of 2017. Supportive of the AUD are the rebound in iron ore prices and positive Chinese economic data, while the RBNZ’s on-hold stance (arguably even more entrenched than the RBA’s) is chipping away at NZ’s yield advantage.”