Further downside for AUD and NZD – Wells Fargo

At their respective monetary policy meetings this week, central banks in Australia and New Zealand remained relatively comfortably on hold. Economists at Wells Fargo analyze AUD and NZD outlook.

Low for AUD/USD around 0.61, NZD/USD around 0.57 by end Q1-2024

Against a backdrop of overall resilient US activity and higher US yields, we view an on-hold RBA and RBNZ as consistent with some further Australian and New Zealand Dollar downside in the months ahead.

We target a low for AUD/USD around 0.6100, and a low for NZD/USD around 0.5700, by the end of Q1-2024.