Flash: AUD/NZD's fair value - WIB

FXStreet (Guatemala) - Sean Callow, analyst at Westpac Banking Corporation ABN explained as the RBNZ kicks off its tightening cycle on a hawkish note, AUD/NZD remains on track near term for a test of its 1.0460 low from 2005, perhaps even as far as the high 1.03s.

Key Quotes:

“AUD’s greater sensitivity to China’s sluggish industrial growth pulse adds to the downside risks on AUD/NZD. However, with the pair far below its long term average and markets already priced for another 125bp in RBNZ rate hikes over the next year, we continue expect the next big move in the cross to be to the top side”.

“Fair value remains around 1.09-1.10”.