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29 Jul 2014
AUD/NZD: Potential to move higher - RBS
FXStreet (Bali) - According to FX Strategists at RBS, the relative move in RBA/RBNZ bias suggests AUD/NZD hast the potential to move higher.
Key Quotes
"The RBNZ has revealed (i) that there will be a period of assessment before interest rates adjust further towards a more neutral level, (ii) the level of the NZD was unjustified and unsustainable and (iii) that future moves will depend on the impact of hikes thus far on future economic data."
"Along with stronger China activity data, the relative move in RBA/RBNZ bias suggests AUD/NZD can move higher. Further support is seen coming from higher industrial metal prices, although still low iron ore prices is a partial offset."
Key Quotes
"The RBNZ has revealed (i) that there will be a period of assessment before interest rates adjust further towards a more neutral level, (ii) the level of the NZD was unjustified and unsustainable and (iii) that future moves will depend on the impact of hikes thus far on future economic data."
"Along with stronger China activity data, the relative move in RBA/RBNZ bias suggests AUD/NZD can move higher. Further support is seen coming from higher industrial metal prices, although still low iron ore prices is a partial offset."