FXStreet (Guatemala) – Analysts at BNZ explained the conditions surrounding NZD/USD and AUD/NZD.
Key Quotes:
“NZD/USD kept its head above water, despite the retreat in risk appetite, and sizeable declines in its peers. That comes courtesy of the updraft in NZD/AUD, where investors are looking to once again test critical resistance at 0.9470. Our fair-value model suggests the cross should be trading nearer to 0.89, consistent with rate differentials.
A cut from the RBNZ tomorrow morning, coupled with an on-hold decision from the RBA next week, would likely provide the cross an express ticket back to fundamentals.”
(Market News Provided by FXstreet)