Over the past 24-hours the NZD/USD has traded between 0.8000 and 0.8050, sitting at the lower-end of this range at present. There was little on the domestic front to drive the NZD yesterday. Equally, overnight markets were fairly lacklustre in the midst of the Northern hemisphere summer lull. The NZD sits little changed on most key crosses.
The NZD/AUD reached toward 0.8770 overnight, before dropping back to sit around 0.8750 this morning. We see further appreciation over the medium-term but continue to note that for now the NZD/AUD sits a little above its fundamental ‘fair-value’. We see the NZD/AUD above 0.9000 by year-end, as relative growth, commodity price and interest rate trajectories favour the NZD.
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