NZD/AUD cross could retest the 0.9625 - Westpac

In view of Imre Speizer, Research Analysts at Westpac, the NZD/AUD cross could retest the 0.9625 peak formed last week if iron prices remain under pressure.

Key Quotes

“It’s starting to look technically overbought and due for s decent pullback.”

“3 months ahead: Fair value for the cross has fallen to around 0.90, following this year’s sharp decline in iron ore prices. We see that as a fair target for the remainder of 2017. Potentially supports for the AUD include the Chinese authorities’ eagerness to counter the negative headlines over Moody’s sovereign downgrade. In addition, the strength of steel reinforcing bar (rebar) prices suggests iron ore should eventually play catch-up.”