Free Trial
OPTIONS

Larger FX Option Pipeline

PIPELINE

UAE 2Pt Size Set: $1.75B

STIR

Huge SOFR Conversion Spd

GLOBAL POLITICAL RISK

Xi Treads Line Between Russia And West AT BRICS Summit

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

NAB: Still Has Upside Amid Relative Economic Strength

AUDNZD

NAB note that “in addition to our downward AUD revisions, our new central forecasts also show further downside potential for NZD over the next six months. Relative to Australia, however, New Zealand’s economic outlook remains soft against a backdrop of tightening financial conditions amid elevated mortgage rates and steadily falling house prices, while negative net migration remains and a slow return of global tourism are additional headwinds.”

  • “The tweak to our AUD/NZD projection is insignificant. Directionally we have been calling for a higher AUD/NZD cross rate all year, reflecting more upside in Australian vs. NZ commodity price relativities, the scope for AU/NZ rates spreads to increase, and the more challenging domestic economic conditions in NZ vs. Australia.”
  • “These forces remain in play and we see the cross stretching further to around NZ$1.13 in the second half of the year before reversing course.”
142 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

NAB note that “in addition to our downward AUD revisions, our new central forecasts also show further downside potential for NZD over the next six months. Relative to Australia, however, New Zealand’s economic outlook remains soft against a backdrop of tightening financial conditions amid elevated mortgage rates and steadily falling house prices, while negative net migration remains and a slow return of global tourism are additional headwinds.”

  • “The tweak to our AUD/NZD projection is insignificant. Directionally we have been calling for a higher AUD/NZD cross rate all year, reflecting more upside in Australian vs. NZ commodity price relativities, the scope for AU/NZ rates spreads to increase, and the more challenging domestic economic conditions in NZ vs. Australia.”
  • “These forces remain in play and we see the cross stretching further to around NZ$1.13 in the second half of the year before reversing course.”