AUD/NZD trended firmly higher in March and has ground lower so far in April. Economists at Westpac believe the pair should move higher towards the 1.0950 level.
Dips to the low 1.07s should be bought
“It seems market perceptions of RBA vs RBNZ policy views are more influential on AUD/NZD at the moment than relative trade positions. Australia’s export prices have outperformed New Zealand’s since mid-2020, driving Australia’s surpluses on both trade balance and current account.”
“Such a divergence underpins our preference to buy AUD/NZD dips to the low 1.07s, with scope for another run at 1.0950 multi-week.”
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