AUD/NZD has some room to slide before a rally into year end

Author: Eamonn Sheridan | Category: News

An item from TD on the Australian and New Zealand dollars 

  • Easier RBA and RBNZ have meant AUD and NZD have succumbed "to the USD carry king."
  • While there is room for fiscal manoeuvring, hedging costs and loss of yield advantage to the USD will likely continue to starve these currencies - NZD especially - of foreign capital flows.
TD expect AUD and NZD to continue to trade heavily "Absent an appreciable and sustained positive global macro impulse"
  • see clear risks that they continue to grind towards new cycle lows
On the cross:
  • we see room for AUDNZD to temporarily dip before returning towards 1.10 by year-end
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An item from TD on the Australian and New Zealand dollars 
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