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19 Mar 2013
Forex Flash: AUD/NZD seen at 1.22 mid-year; 1.1765 year-end - BNZ
FXstreet.com (Barcelona) - The week ahead is shaping up as another important one for the AUD/NZD, says Mike Jones, FX strategist at Bank of New Zealand. The cross rallied hard after the contrast of a dovish RBNZ and upbeat AU employment data.
"BNZ economists have pushed back the expected timing of the first RBNZ rate hike to March 2014 now. Meanwhile, our NAB colleagues have trimmed the number of 25bps RBA rate cuts expected this year to two, from three" Mike says.
Mike adds: "These changes to the NZ-AU monetary policy outlook made us revise higher the extent of AUD/NZD declines expected this year. We are still bearish, but have risen our mid-year forecast up to 1.2195 and our year-end forecast up to 1.1765."
"BNZ economists have pushed back the expected timing of the first RBNZ rate hike to March 2014 now. Meanwhile, our NAB colleagues have trimmed the number of 25bps RBA rate cuts expected this year to two, from three" Mike says.
Mike adds: "These changes to the NZ-AU monetary policy outlook made us revise higher the extent of AUD/NZD declines expected this year. We are still bearish, but have risen our mid-year forecast up to 1.2195 and our year-end forecast up to 1.1765."