NZD/AUD: 0.9300 to give way for a multi-week move to the 0.9000 - Westpac

Imre Speizer, Research Analyst at Westpac, expects the 0.9300 area to give way eventually, for a multi-week move to the 0.9000 area for the NZD/AUD cross.

Key Quotes

“Whether that breakdown starts this week will depend on whether CPI prints higher than the 0.5% qoq median estimate (Westpac expects 0.9%) and thus makes a Nov rate cut even less likely.

3 months: We target 0.90 multi-month because the cross is trading well above fair value of 0.89 implied by relative interest rates, commodities and risk sentiment. In addition, the RBNZ has signalled further easing while the RBA has not signalled anything.

1 year: Our economic fundamentals based forecast is 0.93.”