AUD/NZD: to consolidate in a 1.0900-1.1000 range? - Westpac
Analysts at Westpac offered their outlook for the antipodeans and rates.
Key Quotes:
"AUD/NZD 1 day: Probably consolidates in a 1.0900-1.1000 range.
AUD/NZD 1-3 month: September’s downward correction should give way to a resumption of the trend rise which started in June, and test 1.12, contingent on AU commodity prices recovering and risk sentiment remaining elevated.
AU swap yields 1 day: The 3yr should open around 2.14%, the 10yr around 2.90%.
AU swap yields 1-3 month: Our RBA outlook (on hold throughout 2018) is anchoring short-maturity interest rates and should keep 3yr swap rates in a 1.80% to 2.30% range, as long as core inflation remains below 2%. Longer maturity rates will largely follow US rates.
NZ swap yields 1 day: NZ 2yr swap rates should open up 1bp at 2.21%, the 10yr unchanged at 3.20%, in response to AU and US interest rates movement overnight.
NZ swap yields 1-3 month: Our RBNZ outlook (on hold throughout 2018) is anchoring short-maturity interest rates and should keep 2yr swap rates in a 2.10% to 2.50% range, as long as inflation remains below 2%. Longer maturity rates will largely follow US rates."
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
