NZD/AUD: Further consolidation around 0.9200 is possible - Westpac

Sandeep Kanihama FXStreet Contributor

In view of Imre Speizer, Research Analyst at Westpac, the technically important break below the 0.9300 area for NZD/AUD pair has been sustained (surviving a decent rebound) and some further consolidation around 0.9200 is possible before the multi-month downtrend resumes.

Key Quotes

“This week’s Australian data calendar contains Feb retail sales and building approvals plus March inflation gauge (all Mon), and then Feb trade balance Tue- 3 hours ahead of the RBA statement. Potentially supportive for the AUD this week should be a bounce in trade surplus and a mostly positive tone from the RBA.”

“3 months ahead: We target the 0.8800 area multi-month, which coincidentally is close to fair value according to our model which captures interest rates, commodities, and risk sentiment. The cross is now only 4% overvalued, compared to 9% late last year.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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