Halister News

(Bloomberg) -- AUD/NZD could move into higher trading range if analysts expectations of more rate cuts in New Zealand are correct, Bloomberg strategist Mark Cranfield writes.

• The last time RBNZ cut rates faster than RBA was 2009; click here to see chart
  • AUD/NZD was trading in 1.20s; click here to see chart
  • Then, in 3Q 2009, RBA started raising its cash rate, taking it 175 bps above RBNZ’s by end-2010; AUD/NZD advance peaked just below 1.3800 in March 2011
• AUD/NZD seen at 1.1290 in 4Q 2016 using median forecasts from analysts contributing to Bloomberg survey; cross is up 4.8% this year to 1.1172
• NOTE: Mark Cranfield is an FX strategist who writes for First Word. The observations he makes are his own and are not intended as investment advice.