Australian and New Zealand dollar updates for the week ahead via ANZ's outlook. In brief:
- Improving news and some suggestions that the pandemic may have reached its peak have seen the AUD outperform.
- Its medium-term prospects are likely to hinge on how fast activity can resume and how well economies cope with resurgences in case numbers.
- ANZ Fair value: 0.67
- A large share of New Zealand's exports goes to Asia, leaving it exposed to a global growth slowdown.
- The mix of lower export volumes, tourist arrivals, commodity prices and business confidence will continue to weigh on the NZD, despite recent outperformance from improving risk sentiment.
- ANZ Fair value: 0.65