Aud And Nzd To Appreciate

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Aud And Nzd To Appreciate

Aud And Nzd To Appreciate Moderately

Last year was not so good for the AUD/USD and NZD/USD pairs, as both hit a new one in October 2023. Since then, the AUD and NZD have recovered slightly but are still far from their nearest highs.

However, according to Commerzbank's analysts, this apparent weakness in AUD and NZD will likely change this week.

Rba And Rbnz To Stay Hawkish In 2024

The analysts from Commerzbank believe that hawkish central banks will drive the upside in NZD and AUD. They added that the real economy is weakening in both countries. Despite this, the respective currencies will show a moderate appreciation this year.

The Commerzbank believes that the central banks of Australia & New Zealand will maintain a hawkish stance. Considering the current global economic situation, this is surprising.

According to Commerzbank, both central banks have yet to achieve their objective of consistent weakness in inflation numbers. That's why the timing of rate cuts from New Zealand and Australia will be behind the significant G10 central banks.

In short, the rest of the G10 economies will be the first movers into the rate-cut territory. However, the interest rates in Australia and New Zealand will remain elevated. Given this scenario, the AUD and NZD will adopt a more hawkish stance against the USD and EUR.

Another forecast made by Commerzbank was that there needs to be more chance of rate cuts from these banks in 2024. After all, these central banks have long relied on a restrictive approach to control inflation.

Given these fundamentals, Commerzbank has issued a bullish outlook for AUD/USD and the NZD/USD pairs. It is only evident for the AUD and NZD to gain against other currencies such as EUR, JPY, & others. For now, the AUD/USD and NZD/USD exchange rates are 0.65 and 0.61 respectively.

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