NZD/AUD: Implied target is around 0.8800 - Westpac

According to Imre Speizer, Research Analyst at Westpac, the NZD/AUD cross has sustained it break below key support at 0.9280 two weeks ago and the implied target is around 0.8800, but that will take time.

Key Quotes

“This week, we are alert for a brief upward correction, which should not run any higher than 0.9280 - the break level. This week’s data calendar could be influential: Jan housing finance (Fri), Feb NAB business confidence (Tue) , Mar Westpac-MI consumer sentiment (Wed) and Feb labour force (Thu), with the latter most important.”

“3 months: NZD/AUD is starting to reflect the outperformance of AU commodities as well as better AU economic data ahead. We the 0.8800 area multi-month, which coincidentally is close to fair value according to our model which captures interest rates, commodities, and risk sentiment.”