Compared to the RBA, the RBNZ has a bigger problem with valuations
It is now well in the price of both the AUD and NZD that heading into each individual policy decision of their respective central banks, there will be a tendency to talk down the currency and express concern over the valuations. In particular, both countries have already highlighted the strength of the currency relative to export prices, and how further correction is needed. However, the RBA neglects (both today and beyond) in a benign way to state how better a position AUD’s valuations are in compared to its neighbours across the ‘ditch’ on such a measure. This could also become increasingly apparent in the two countries’ respective policy direction over the coming quarters.
Read the full report: UBS