The New Zealand dollar offers a better buying opportunity than the Australian dollar, Société Générale economists report.
AUD and NOK could be the two G10 currencies most at risk of a New Year hangover
“The RBNZ is the only central bank that is more aggressive than the Fed on monetary policy, making interest rate differentials more beneficial for the New Zealand currency. Similarly, AUD vs NZD rate differentials suggest further declines are on the horizon for AUD/NZD, even now.”
“One thing to keep in mind: if the global equity market rebound loses steam, then given the levels of correlation between risk sentiment and currency trends, I don’t see the NZD (or AUD, NOK or SEK) defining that trend.”
“However, G10 currency values remain supportive: AUD, NZD, CAD, JPY and SEK are all at low levels. Bottom line: AUD and NOK could be the two G10 currencies most at risk of a New Year hangover.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
