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2 Aug 2013
Flash: AUD/NZD sell-off largely justified, 1.1140 eyed - ANZ
FXstreet.com (Barcelona) - Although the AUD/NZD move been one of the most violent this year across the FX market, David Croy, ANZ Strategist, finds that "interest rate differentials and relative commodity prices largely justify the move."
Key Quotes
"Diverging monetary policy biases have been a key driving force ahead of next week’s RBA decision, where we expect a rate cut."
"While we believe the move lower has been justified, short-term technicals are oversold. Accordingly, we expect the cross to consolidate around current levels, with upside corrections limited to 1.1550/1.1600, and the downside defined by our 1.1140 forecast for year-end."
Key Quotes
"Diverging monetary policy biases have been a key driving force ahead of next week’s RBA decision, where we expect a rate cut."
"While we believe the move lower has been justified, short-term technicals are oversold. Accordingly, we expect the cross to consolidate around current levels, with upside corrections limited to 1.1550/1.1600, and the downside defined by our 1.1140 forecast for year-end."