AUD/NZD set to reach parity as RBA/RBNZ divergence may become starker – OCBC

RBA/RBNZ divergence has been a clear trading theme and could become starker in the run-up to the October RBNZ meeting. Economists at OCBC Bank expect further AUD/NZD downside, with the parity chatter growing. 

Negative on the AUD against the NZD

“Rising expectations for a 50 bps hike at the Reserve Bank of New Zealand in October may also open up further AUD/NZD downside room.”

“Parity on the AUD/NZD pair cannot be explicitly ruled out.”