Have we missed the boat for parity in AUD/NZD?
City Index May 1, 2015 4:23 PM
<p>At the beginning of April, analyst predictions were awash with calls for parity between the Australian Dollar and the Kiwi Dollar. A low of 1.0021 […]</p>
At the beginning of April, analyst predictions were awash with calls for parity between the Australian Dollar and the Kiwi Dollar. A low of 1.0021 was traded on 6th April, but it fell short of hitting the mark. Since then, we have bounced to trade above 1.02.
Positioning in this pair looks like it does favour more upside pressure in the coming days (I would expect to push 1.0340, even up to 1.05 before heading lower) but next week sees a big economic docket for Australia and New Zealand. This could be perfect timing to readjust that bullish outlook to one of a bearish nature.
The most likely event to cause a stir is the RBA rate decision. From the data we have seen there is STILL potential for a rate cut in May. If that’s not enough for you, employment figures, Retail sales and building approvals are also in play. It could be a week of the perfect storm, rates cuts AND poor figures. If this happens expect the parity party invites to be resent out. Whatever happens, expect volatility.
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