Shane Oliver sees Aussie Kiwi heading to 1.25

Livewire Exclusive

Livewire Markets

After today’s benign CPI data and a measured Glenn Stevens, we look ahead to tomorrow’s rate decision from the RBNZ and ask AMP Capital's Head of Investment Strategy and Chief Economist, Dr Shane Oliver his view on relative rates and the AUD/NZD. Dr Oliver sees the interest rate differential continuing to narrow, “With the RBNZ now cutting rates, the rate differential between NZ and Australia is now narrowing and set to narrow further”. When questioned on the currency pair Oliver said, “With the interest rate differential in favour of NZ set to narrow (even if the RBA does cut rates once more), the AUD/NZD rate is set to head higher. It’s currently approaching some resistance around the 1.15 level but once this breaks a run up to 1.25 is likely during the course of the next year or two.” This rate narrowing view was echoed by Westpac New Zealand’s Senior Market Strategist, Imre Speizer. Speizer see the RBNZ aggressively easing into 2% by December with the RBA probably on hold until the end of the year.

Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.