Antipodeans downsides are looking favourable - Westpac

Analysts at Westpac offered their outlook in respect of the antipodeans.

Key Quotes:

"AUD/USD 1 day:  The downside remains vulnerable, 0.7440 the immediate target.

AUD/USD 1-3 month: The uncertainty generated by Brexit plus further RBA easing should be negative for the AUD during the months ahead. We target sub-0.72.

NZD/USD 1 day: Still flirting with a break below 0.7000, an expected lower OCR a headwind.

NZD/USD 1-3 month:  The uncertainty generated by Brexit plus further RBNZ easing should be negative for the NZD. We target 0.67.

AUD/NZD 1 day: Consolidating July’s gains in a 1.0600-1.0770 range.

AUD/NZD 1-3 month: We expect both the RBA and RBNZ to cut their policy rates in August, to 1.5% and 2.0% respectively.  Relative central bank paths are thus neutral for the cross. Multi-month, though, there is a case for higher, towards 1.0800, given it is currently well below fair value implied by interest rates, commodity prices and risk sentiment."