Following sharp falls vs. the USD since the middle of last month, both the AUD and the NZD have recovered a little ground, notes the research team at Rabobank.
Key Quotes
“There are some domestic reasons behind the softness in both the AUD and NZD since February. However, a large part of the movement in FX markets recently can be linked to a broad-based reappraisal in the outlook for the USD. Although it is likely that the greenback could consolidate or give back some of its recent gains vs. both the AUD and the NZD over the next few weeks, over the medium-term we see scope for additional USD gains.”
“Having hit our 3 month targets for both AUD/USD and NZD/USD we have lowered our forecasts moderately for both of these currency pairs. We are now targeting AUD/USD0.72 and NZD/USD0.66 on a 12 mth view.”
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