A real quick snippet from ANZ on their fair value model for the New Zealand and Australian dollars
- ANZ have fair value for the NZD at 063
- And for AUD at 0.70
ANZ outlooks for both are 'mildly bullish' for this week and bearish for the month ahead.
AUD has been short on luck
- We have now broken support. How low the AUD falls will be defined by how aggressively the RBA eases and the success of Chinese stimulus efforts.
NZD
- is expected to trade in line with risk sentiment
- little in the domestic story to justify recent strength
- a challenging global story over the medium term, we still think conditions are in place for the NZD to fall below fair value in 2019