AUD/NZD to break below 1.03 soon – ING

FXStreet Insights Team FXStreet

China’s market turmoil is inevitably hitting the kiwi dollar that, albeit to a smaller extent than AUD, also has a high beta to the Chinese sentiment. Economists at ING expect the AUD/NZD to slide below the 1.03 level.

NZD still looks like a safer bet than AUD in the short-term

“Like in Australia, the data calendar is very quiet in New Zealand, and external factors should continue to dominate NZD price action.”

“NZD still looks like a safer bet than AUD in the short-term. An Evergrande default may hit AUD also through the iron ore channel; while the opposite – Evergrande’s situation stabilising, possibly thanks to government support – may see market sentiment improve: here NZD has a more attractive implied yield than AUD and may therefore perform better.”

“We expect a break below 1.0300 in AUD/NZD soon.”

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FXStreet Insights Team

FXStreet

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