NZD/AUD: Multi-month rally could extend to the 0.95-0.96 - Westpac

Imre Speizer, Research Analyst at Westpac suggests that the multi-month rally in the NZD/AUD cross could extend to the 0.95-0.96 area this week if iron prices remain downtrodden.

Key Quotes

“Commodity support should improve near term. Chinese authorities have been eager to counter the negative headlines over Moody’s downgrade of China and the strength of steel reinforcing bar (rebar) prices suggests iron ore could play catch-up.”

“3 months ahead: Fair value for this cross has fallen to around 0.90, following this year’s sharp decline in iron ore prices. We see that as a fair target for the remainder of 2017.”