The Australian dollar and the New Zealand dollar are consolidating after recent profits, since commercial tensions between the US and China have decreased, while the USD failed to recover much land, says Chris Turner, FX analyst of ING.
The objectives for the AUD/USD and the NZD/USD are 0.66 and 0.61 respectively
“Projecting a great rebound in the AUD and the NZD has been more difficult compared to European currencies that have exceeded expectations, which, by the way, benefit from stronger repatriation flow effects. However, the reduction of external economic risks related to China can allow the AUD and NZD next weeks. “
“The NZD remains a more attractive option in our opinion, since the New Zealand Reserve Bank has pointed out a greater caution in the additional relaxation, while the moderate inclination of the Bank of the Australian reserve suggests more margin for cuts. We expect only an additional cut in New Zealand this year, since the IP of services can be too slow to slow further.”
“The erosion of the advantage in AU rates in relation to the NZD means that periods of calm in risk assets can favor the NZD more than the AUD for the rest of the year. For now, we maintain our short -term objectives of 0.66 in Aud/USD and 0.61 in NZD/USD.”
Source: Fx Street
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