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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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Free AccessWestpac On AUD/NZD - Still Constructive
"Divergence in policy stances between the RBA and RBNZ have driven sharp swings in the AU-
NZ 2-year swap spread since the pandemic mostly skewing in the Kiwi’s favour...The RBA’s newly hawkish stance should ensure the worst is over for AUD/NZD from this angle. Meanwhile, our estimate of AUD/NZD fair value has risen this year (now 1.12), as China’s switch to stoking growth has boosted prices of Australia’s industrial commodity exports relative to NZ’s. Australia is already running trade surpluses while NZ’s current account deficit expanded beyond -7% of GDP in 2022, leaving NZ$ more exposed to global sentiment. The RBNZ fallout could see AUD/NZD extend to
1.0880 support near term, but multi-week/month we still see scope for a run at 1.1200."
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.