Plenty to come from the antipodeans this week - ANZ

Analysts at ANZ explained that late last week the NZD/AUD briefly dipped its toes into the 0.80s for the first time since April 2016. 

Key Quotes:

"It has therefore fallen close to 7% in less than three months. In part this weakness reflects New Zealand- related factors such as domestic political uncertainty and a reassessment of the RBNZ policy outlook. However, there is also an AUD element to it, given recent strength in ‘hard’ commodity prices, a better tone to economic data and perhaps even a mildly hawkish shift from the RBA."

"In some way or form we should get an update on those AUD-related factors over the next few days, with the RBA’s cash rate decision today, a speech from Governor Lowe this evening, and Q2 GDP figures tomorrow (with the final partial indicators released today)."

"The NZD/AUD is starting to look a little ‘cheap’, and on some metrics even ‘oversold’. However, it has broken through some key support levels, and so technically it is still looking challenged and prone to tests lower. The next few days could determine how quickly that occurs."