AUD/NZD short term fair value is around 1.09 – Westpac

Sean Callow, Research Analyst at Westpac, notes that spot AUD/NZD has gyrated either side of Westpac’s short term fair value estimate for the past year or so, recently bouncing to somewhat above fair value. Key Quotes “The spot rally to above 1.12 in Oct 2017 produced the larges ...

AUD/NZD should trend towards the 1.1250 area – Westpac

US-China trade tensions remain a potential weight on the cross but if China avoids a major growth disruption, AUD/NZD should trend towards the 1.1250 area multi-week/month, according to Sean Callow, Research Analyst at Westpac. Key Quotes “AUD/NZD was already trending higher when it was give ...

RBNZ: Patient, amid mixed messages – Nomura

Andrew Ticehurst, Research Analyst at Nomura, notes that the Reserve Bank of New Zealand (RBNZ) today announced an unchanged cash rate, at 1.75%, as was uniformly expected. Key Quotes “We see mixed messages on growth and inflation, but note less near-term momentum and more spare capacity, an ...

RBNZ: the doves fly … too high – TDS

Analysts at TD Securities explained that the RBNZ left the cash rate at 1.75% as widely anticipated, but the forward guidance was unexpectedly dovish, with "We expect to keep the OCR at this level through 2019 and into 2020. Key Quotes: "The direction of our next OCR move could be up o ...

RBA: Goldilocks on the horizon – TDS

Annette Beacher, Chief Asia-Pacific Macro Strategist at TD Securities, points out that the marquee annual Anika Foundation speech saw the RBA Governor tip toe closer to a vision of a Goldilocks economy by 2020. Key Quotes “The Governor has signalled that the RBA expects (1) GDP growth t ...

RBA-RBNZ showdown – ANZ

Analysts at ANZ Bank New Zealand Limited explained that the main focus for the AUD/NZD this week is the central bank showdown.  Key Quotes: "The RBA is first up this afternoon, while the RBNZ will give its take Thursday morning. ANZ Research expects the RBA to keep its growth an ...

AUD/NZD Technical Analysis: Bullish, near a key resistance

Pair holds a bullish outlook ahead of RBA and RBNZ but trades near a strong resistance area.  Between 1.0975 and 1.1000 the pair has a significant barrier that includes the 61.8% Fibonacci retracement of the Nov-Apr slide.  Consolidation on top of 1.1000, likely to signal more gain ...

RBA: Glass half full approach is not credible – TDS

Analysts at TD Securities suggest that when it comes to the RBA, talk is cheap and this week will bring the policy decision and its updated outlook. Key Quotes “We note that the RBA's glass half full approach is not credible as wages remain tepid and wholesale funding issues persist ...

Australia: Building approvals jump 6.4% – TDS

Analysts at TD Securities note that Australia’s building approvals jump +6.4% in June. Key Quotes “Besides the apartment boom, there was a decent rebound in houses at +5%. Credit growth at +0.3%/m for June brought no surprises. Housing +0.3%/m and business at +0.3%/m.&rdquo ...

AUD/NZD sits fairly close to fair value – Westpac

In view of analysts at Westpac, AUD/NZD sits fairly close to fair value, according to Westpac’s short term model which includes yield spreads and commodities. Key Quotes “At 1.0905 it is only 0.5% above fair value of 1.0850, which is an immaterial difference relative to it ...

AUD/NZD Technical Analysis: Waiting for AU jobs data in a range

Price moving sideways, consolidating after Tuesday’s sharp decline ahead of the Australian jobs report.  Potential double bottom at 1.0860, a breakout of the neckline at the 1.0900 area targets 1.0930. Bearish pressure likely to emerge if it drops under 1.0860; the next support i ...

AUD/NZD: Bullish while above 1.0658 – DBS

Benjamin Wong, Strategist at DBS Bank Ltd, points out that as long as AUD/NZD remains above the support range 1.0658/81 it would remain in a bull mode.  Key Quotes:  “The AUD/NZD cross last trooped off higher from a 1.0869 low, pretty much respecting the 200-day moving average (dma ...

AUD/NZD: 200-D SMA now in focus again after dovish RBNZ pop to 1.0855

AUD/NZD on the way to the 200-D SMA, technicals lean bullish. RBNZ seals the deal for the bulls, supported by the 21-D SMA and 50-D SMA.  This AUD/NZD cross found some supply near 1.0869, and has drifted lower off that level in  NY ahead of the RBNZ. The cross took off on a dovis ...