Market news
17.03.2021, 08:22

AUD/NZD set to race higher towards the 1.10 level – Westpac

FXStreet reports that economists at Westpac discusses AUD/NZD prospects.

“Forecast returns to New Zealand farmers have been revised higher after the recent surge in dairy prices at auction. Overall NZ’s terms of trade continues to trend firmly higher. But prices and volumes of Australia’s key commodity exports have been very robust through the pandemic. Indeed Australia has recorded trade surpluses for >3 years and is running current account surpluses in contrast to ongoing deficits in NZ. The relative monetary policy ‘vibe’ has favoured the kiwi since markets stopped pricing a negative cash rate in Nov 2020. OIS markets now price a sizeable risk of a rate hike this year. However, we expect such expectations to be disappointed, with the cash rate on hold through 2021 and also 2022. We look for AUD/NZD to find support in the mid-high 1.06s, with multi-week scope for another run at 1.10.”

© 2000-2021. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Feedback
Live Chat E-mail
Up
Choose your language / location