A note from ANZ Research recommending AUD/NZD exposure
In brief:
The recent stability of both the AUD/USD and the NZD/USD in the face of global market turmoil has been somewhat surprising
- To some degree it highlights that both Australia and New Zealand are in relatively decent shape
- Domestic demand is improving
- Unemployment rates are falling
- Both are showing resilience to the shocks emanating from the resource sector
Recent outperformance of the NZD looks unjustified
- Data surprise indexes in fact show that more recently the AUD economy has beaten fundamental expectations by a far greater amount than NZD