Analysts from TD Securities continue to see the AUD/NZD pair going to the upside and they expected it to remain on the 1.072-1.105 range.
Key Quotes:
“We expect AUDNZD to maintain the 1.072 to 1.105 range. Though dovish, the RBA seems less keen than the RBNZ to weaken the currency while valuations and fundamentals skew positively in AUD’s favor.”
“Another link remains the connections with China and Asian financial markets. AUDNZD closely follows a proxy of China-linked variables (like mining, EMFX, base metals, and MSCI China) amid AUD’s closer ties with China.”
“Even though AU lockdowns have been tighter than NZ, AUD’s positive external backdrop offsets that. Instead, we would look to use any domestic data-inspired pullbacks to buy AUD.”
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