Westpac outline the factors driving the Australian and New Zealand dollars:
Near-term risks remain negative,
- with RBA vs RBNZ trajectory,
- and trade and political tensions between Australia and China,
- weighing on the cross and dominating Australian commodity outperformance. There's potential for a decline towards 1.06 during the month ahead.
By year end, though, we expect to see it higher at 1.09+.
- Elevated global risk sentiment (amid vaccine deployment)
- and solid growth in China
should benefit the AUD more than the NZD
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Weekly candles:
