AUD/NZD: watch RBNZ and 1.0560 – BNZ

By FXStreet FXStreet (Guatemala) – Analysts at BNZ explained the conditions surrounding NZD/USD and AUD/NZD.

Key Quotes:

“NZD/USD kept its head above water, despite the retreat in risk appetite, and sizeable declines in its peers. That comes courtesy of the updraft in NZD/AUD, where investors are looking to once again test critical resistance at 0.9470. Our fair-value model suggests the cross should be trading nearer to 0.89, consistent with rate differentials.

A cut from the RBNZ tomorrow morning, coupled with an on-hold decision from the RBA next week, would likely provide the cross an express ticket back to fundamentals.”
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Source:: FX Street