ANZ Bank has shared its outlook on the AUD/NZD and USD/JPY currency pairs for this week.
For the AUD/NZD pair, ANZ suggests that the New Zealand Dollar (NZD) will likely remain range-bound over the next week. The bank recommends adopting a “buy on dips” strategy for the AUD/NZD pair. However, ANZ noted that with market expectations for the Reserve Bank of Australia’s (RBA) terminal cash rate now surpassing 4.6%, there is diminishing potential in the relative RBA vs. Reserve Bank of New Zealand (RBNZ) trade.
Regarding the USD/JPY pair, ANZ anticipates that the pair could relinquish some of the gains it has achieved over the past 48 hours, as the volatility triggered by the Bank of Japan (BoJ) and the Federal Open Market Committee (FOMC) meetings subsides. The bank believes that a decline in U.S. yields could contribute to this easing of the USD/JPY pair.
Investors and traders are advised to closely monitor market movements and exercise caution in their trading strategies.
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