AUD/NZD: The key 1.10 resistance looms on the horizon – Westpac
|The AUD/NZD recovery is backed by Australia’s stronger external position. Economists at Westpac Institutional believes a test of the 1.10 key resistance is on the cards.
Key quotes
“While the RBNZ insists the OCR will remain at 0.25% into 2021, we still see negative interest rates as likely in NZ, contrasting with the RBA. This debate should help limit AUD/NZD pullbacks near-term to about 1.06, with a multi week scope for 1.0860 and perhaps even a test of 1.10 resistance.”
“As for NZ, whole milk powder prices are 12% below the average of the past three years. We expect industrial commodities to outperform in coming months, with consumer spending struggling – a trend already clear in China. This favours AUD/NZD.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.