NZD/AUD: 0.9200 area remains vulnerable - Westpac

The 0.9200 area for NZD/AUD cross has survived multiple tests during the past few weeks but it remains vulnerable, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Iron ore has extended its spectacular rally since mid-June (up 50%), ensuring AU commodity basket outperformance relative to NZ and helping AUD outperfom the NZD. The event calendar this week is devoid of market-moving releases.”

“3 months ahead: Fair value for the cross is around 0.90. We see that as a fair target for the remainder of 2017. Supportive of the AUD are the rebound in iron ore prices and positive Chinese economic data, as well as the RBNZ’s on-hold stance (arguably even more entrenched than the RBA’s).”