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21 Feb 2014
Flash: AUD underperformance vs NZD has run its course - TDS
FXStreet (Bali) - In view of Annette Beacher and Prash Newnaha, FX Strategists at TD Securities, it is highly unlikely to see another fresh bout of sustained NZD outperformance against the AUD in 2014.
Key Quotes
The factors that underpinned NZD outperformance over the past year are fading, while the medium-term virtues of the Australian economy remain under a bushel of near-term noise."
"We expect a few more data reports (GDP, CPI) to shore up RBA confidence in announcing that the era of requiring an emergency-level cash rate is coming to an end."
"Subsequently, sustained AUD underperformance compared with the NZD has run its course, and we see upside in this cross towards 1.10 by mid-year and 1.13 by year end."
Key Quotes
The factors that underpinned NZD outperformance over the past year are fading, while the medium-term virtues of the Australian economy remain under a bushel of near-term noise."
"We expect a few more data reports (GDP, CPI) to shore up RBA confidence in announcing that the era of requiring an emergency-level cash rate is coming to an end."
"Subsequently, sustained AUD underperformance compared with the NZD has run its course, and we see upside in this cross towards 1.10 by mid-year and 1.13 by year end."