AUD/NZD seen lower at 1.01 in six months – Goldman Sachs

Analysts at Goldman Sachs offer their view on AUD/NZD, given a more hawkish RBNZ when compared to the RBA’s monetary policy stance.

Key quotes

“Our economists also revised their forecast to include a 25bp hike at each of the next (and last) three meetings of 2021, now roughly in line with market expectations.”

“But we maintain a more hawkish RBNZ view than the market in the medium-term (i.e., a higher terminal rate), especially relative to the RBA, where our policy rate forecasts are more dovish than the path currently priced.”

“Taken together, we see further room for downside in AUD/NZD, and reiterate our forecast of 1.01 in 6 months.”