NZD/AUD: Multi-month decline remains intact - Westpac

The multi-month decline of NZD/AUD cross remains intact, targeting 0.9075 (the May low) during the weeks ahead, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Iron ore’s spectacular rally has stalled (it rose 50% since June) but it remains elevated.”

“The event calendar this week remains empty until Jul building approvals and Q2 construction work on Wed, then on Thu 31/8, Q2 capex and 2017/18 investment intentions survey ahead of GDP on 6 Sep.”

“3 months ahead: Fair value for the cross is around 0.89. We see that as a fair target for the remainder of 2017. Supportive of the AUD are the rebound in iron ore prices and positive Chinese economic data, as well as the RBNZ’s on-hold stance (arguably even more entrenched than the RBA’s).”