NZD/AUD: Retest of the recent 0.9220 lows is possible - Westpac

A retest of the recent 0.9220 lows is possible for NZD/AUD cross during the week ahead as AUD has held up fairly well on many crosses, despite the risk averse mood arising from the US-North Korea tensions, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Commodity prices remain a source of support, with our Australian export price index reaching three month highs.”

“The event calendar highlight this week is July labour force (Thu). Q2 wages (Wed) are also worth watching but rarely surprise. RBA minutes (Tue) have been superseded by the SoMP.”

“3 months ahead: Fair value for the cross is around 0.92. 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).”