AUD/NZD: pullback to 1.0900 suggests 1.0875-1.0925 range trading - Westpac

Analysts at Westpac offered their outlook for AUD/NZD.

Key Quotes:

"AUD/NZD 1 day: The pullback to 1.0900 suggests 1.0875-1.0925 range trading biased by respective commodity performances.

AUD/NZD 1-3 month: The corrective decline which started in late Oct could reach 1.08, but should eventually give way to a retest of 1.12 as long as AU economic data remains supportive and AU commodity prices outperform (18 Dec)

AU swap yields 1 day: The 3yr should open just around 2.19%, with the 10yr remaining at 2.90%.

AU swap yields 1-3 month: Our RBA outlook (on hold throughout 2018) is anchoring short-maturity interest rates and should keep 3yr swap rates in a 1.80% to 2.30% range, as long as core inflation remains below 2%. Longer maturity rates will largely follow US rates. (4 Oct).

NZ swap yields 1 day: NZ 2yr swap rates should remain around 2.21-22%, with the 10yr at 3.22%.

NZ swap yields 1-3 month: Our RBNZ outlook (on hold throughout 2018) is anchoring short-maturity interest rates and should keep 2yr swap rates in a 2.10% to 2.50% range, as long as inflation remains below 2%. Longer maturity rates will largely follow US rates. (4 Oct)"