Analysts at Westpac point out that AUD/NZD fair value has recently fallen, from 1.15 in late October, to 1.12 currently. Key Quotes “Yield spreads have fallen mainly in response to the RBNZ’s “hawkish” surprise last week, but the disappointing AU jobs report also contributed. Commodity spreads have fallen due to 36% fall in iron ore prices since July against a 6% rise in dairy prices over that period.” “The fall in fair value means the cross is not as extremely undervalued as it was (third chart), but it does remain undervalued. We attribute the undervaluation of the past 18 months to the US-China trade war. Recent thawing in that relationship has seen the undervaluation shrink slightly, but we see scope for it to shrink even further, taking the cross to around 1.10 over the next few months. We see last week’s pullback, should it extend to 1.0550, as an opportunity to buy the cross for a reversion towards fair value.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next NZD/USD stays directionless near 0.6400 at the start of the week FX Street 3 years Analysts at Westpac point out that AUD/NZD fair value has recently fallen, from 1.15 in late October, to 1.12 currently. Key Quotes "Yield spreads have fallen mainly in response to the RBNZ's "hawkish" surprise last week, but the disappointing AU jobs report also contributed. Commodity spreads have fallen due to 36% fall in iron ore prices since July against a 6% rise in dairy prices over that period." "The fall in fair value means the cross is not as extremely undervalued as it was (third chart), but it does remain undervalued. We attribute the undervaluation of the past 18 months… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
