The NZD/AUD cross appears to be carving out a topping pattern (“head and shoulders”) with potential for a decline to the 0.93 area during the next few weeks, according to Imre Speizer, Research Analyst at Westpac.
“The key fundamental drivers - commodities and interest rates - are turning in an AUD-supportive direction, with last week’s positive China trade data also helping.”
“The event highlights this week are the RBA meeting minutes on Tue and the June labour force survey Thu.”
“3 months ahead: Fair value for the cross is around 0.92. We see that as a fair target for the remainder of 2017.
Supportive of the AUD are the rebound in iron ore prices (+23% since mid-June) and positive China economic data.”
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