A big year down under: AUD out-performs NZD
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Diminishing appetite for carry trades and a refocusing on global imbalances add up to a poor background for both the Australian and New Zealand dollars. However, the background for AUD is significantly more positive than NZD, and we expect the cross to continue trading higher in the coming months. We outline four factors that point to AUD out-performance of NZD this year.
1.
Relative cyclical positions will reverse this year. The principal driver of the relative performance of AUD and NZD inOnly users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
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