NZD/AUD: Potential for a decline to the 0.93 - Westpac

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.

Key Quotes

“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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