The big difference between these two neighbouring central banks are their respective views on negative rates.
- The RBNZ have all but confirmed they are coming soon (APril 2021 is the tip from NZ banks ASB, ANZ, BNZ).
- The RBA has repeatedly said 'No."
And, I shouldn't discount another big divergence, which is that the RBNZ has been, and looks likely to remain, much more aggressive on its QE operations.
On the currency cross outlook.
Commonwealth Bank of Australia:
- targeting 1.19
Westpac
- target 1.14
HSBC:
- forecasts to 1.13 by year end
Credit Agricole
- 1.13 by the middle of 2021
Weekly candles AUD/NZD. The wheels have fallen off the parity bus:
