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Westpac Flag Near-Term Downside, But Exp. A Move Higher Before Year End

AUDNZD

Westpac note that "near-term risks (for (AUD/NZD) 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 NZ$1.06 during the month ahead. By year end, though, we expect to see it higher at NZ$1.09+. Elevated global risk sentiment (amid vaccine deployment) and solid growth in China should benefit the AUD more than the NZD."

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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