Disliked{quote} can you explain to me why NZD should be weaker than AUD ? The fall in AUDNZD has been backed up by interest rate expectations and continues to be so. Just like the RBNZ said, there's a potential to raise rates further in the medium term vs a potential cut further in the AUD rate. Plus the RBNZ says the currency is just 2% overvalued. Remember when AUD was below 0.9, RBA continued to talk it down by saying it is still overvalued. Just wonder what they think now. AUD econ data needs to recover strong to (and it has a little bit) change the...Ignored
On the other side aggressive tightening by the RBNZ would lead to a dramatically strong NZD which would do serious damage to its exports sector. Fears of the chinese economy not yet going at full steam may delay such rate hikes as I feel it would be highly illogical to make exports more expensive when things are so tentative.
From the above I think we have seen a bottom in the pair for the foreseeable future hence why I am bullish on the AUD over the NZD, as well as the nice technical setup.
I hope this answers your query