The AUD/NZD pair remains stalled in the 1.09s but analysts at Westpac have lifted its forecast from 1.11 to 1.14 by the end of 2020 due to a dovish RBNZ and improved risk sentiment and better prospects of iron ore exports to China.
Key quotes
“Boosted by improving global risk sentiment plus China’s economic recovery (lifting iron ore), the AUD’s outlook outshines the NZD’s. Add to that a yield spread moving in AUD’s favour, as the on-hold RBA contrasts with an increasingly dovish RBNZ.”
“We shift our target from 1.11 to 1.14 by year-end.”
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