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Westpac write "although fundamentals....>

AUSSIE-KIWI
AUSSIE-KIWI: Westpac write "although fundamentals (commodity prices and interest
rates) argue the cross should be higher (fair value is NZ$1.13), global risks
plus mixed AU economic data plus AU political risks are headwinds. That said,
AU-NZ yields spreads should move higher over the next month, lifting the cross
to around NZ$1.0600. Markets are pricing both the RBA and RBNZ to ease this
year, but we expect the RBNZ to cut first, in May, pushing yield spreads
higher."
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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