New Zealand Dollar is clearly overwhelming its Australia counter part recently. AUD/NZD’s decline continues on expectation of diverging central bank policy paths, even though tightening is expected to in the early part of next year. While RBNZ’s terminal rate might be 5.50%, 4.00% looks a bit stretch for RBA based on current outlook.
As for AUD/NZD, further decline is expected as long as 1.0657 minor resistance holds. Next near term target is 100% projection of 1.1489 to 1.0883 from 1.1043 at 1.0437. Such development could retrain Aussie’s rebound elsewhere.
