7 Apr 2015
NZD/AUD targeting a break above 1.0000 – Westpac
FXStreet (Barcelona) - Imre Speizer of Westpac, notes that NZD/AUD retains positive momentum and now targets a break above 1.0000, which would be a fresh post-float record.
Key Quotes
“Iron ore continues to make fresh multi-decade lows, and speculators continue to price RBA easing (-65bp by Dec-16). This afternoon’s RBA meeting is expected to produce a rate cut and leave the door open for more.”
“A break above 1.00 would have historical significance.”
“The last time NZD/AUD was above 1.00 was in 1972. At that time, both the NZD and the AUD were managed currencies, while the USD shifted from a gold peg to a floating exchange rate in 1973.”
“The AUD floated on 12 Dec 1983, and the NZD followed on 4 Mar 1985.”
“Since both the NZD and AUD floated, the cross rate has trended positively, averaged 0.84, and ranged between 0.62 and the current level of 1.00.”
Key Quotes
“Iron ore continues to make fresh multi-decade lows, and speculators continue to price RBA easing (-65bp by Dec-16). This afternoon’s RBA meeting is expected to produce a rate cut and leave the door open for more.”
“A break above 1.00 would have historical significance.”
“The last time NZD/AUD was above 1.00 was in 1972. At that time, both the NZD and the AUD were managed currencies, while the USD shifted from a gold peg to a floating exchange rate in 1973.”
“The AUD floated on 12 Dec 1983, and the NZD followed on 4 Mar 1985.”
“Since both the NZD and AUD floated, the cross rate has trended positively, averaged 0.84, and ranged between 0.62 and the current level of 1.00.”