17 Jan 2014
Flash: How far can the market push the AUD/NZD story? - Westpac
FXstreet.com (Bali) - According to Sean Callow, at some point the market will have priced enough RBNZ rate hikes and enough gloom in Australia.
Key Quotes
"The spot rate is already about 4% below ‘fair value’ based on key inputs such as yield differentials and commodities."
"However, it also shows that over-and-under-shooting can extend to as much as 10% as favoured themes are pursued to exhaustion. So only the brave would try to call a low in the cross near term."
Key Quotes
"The spot rate is already about 4% below ‘fair value’ based on key inputs such as yield differentials and commodities."
"However, it also shows that over-and-under-shooting can extend to as much as 10% as favoured themes are pursued to exhaustion. So only the brave would try to call a low in the cross near term."