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Goldman Sachs See Conditions for AUD/NZD Lower in Near-Term

FOREX
  • Goldman Sachs write that today’s Aussie jobs data supports a RBA hold at the June meeting (though they continue to expect a hike in July), while the new NZ budget points to materially more supportive fiscal policy that will be net inflationary.
  • As such, they now expect the RBNZ to hike by 25bps in both May and July to a 5.75% terminal rate. Resultingly, AUD/NZD can remain under pressure in the near-term.

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