AUD to underperform NZD in near term, but gain towards the end of 2021

News

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

Weekly candles:

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