AUD/NZD: to bounce near term? - Amplifying Global FX

Greg Gibbs, founder, Analyst, and PM, at Amplifying Global FX Capital Pty Ltd explained that AUD/NZD has fallen back to 1.05 for the first time since July last year.

"The pair has fallen well below what might be justified by interest rate spreads.  

However, interest rates have had little impact on the AUD/NZD for the last four or five years.  

This is surprising given rates were the dominant driver in the preceding decade.  

More recently, the AUD/NZD may have been undermined by fear of a China/US trade war.  

We see scope for AUD/NZD to bounce near term, but looking at broad fundamentals, NZD has become less risky over the last 5 to 10 years, and indeed it is proving less sensitive to risk factors."