Australian currency remains under intense bear pressure together with his New Zealand competitor. Greg Gibbs from RBS doubt that the pair will show significant improvement in dynamic in the nearest future. The Australian economy leaves a lot to be desired, and price dynamics on significant raw material for this country does not inspire optimism. At the same time, for the New Zealand situation on market raw materials looks more favorable – the prices for dairy products rose from the December lows. Gibbs said that the possibility of reducing the credit rating of Australia also has a negative impact on the aussie and the differential of spreads profitability gives reason to talk about the potential for reduction of AUD / NZD. In RBS do not see significant obstacles on the way from pair to parity and warned that a breakthrough below 1.00 will open the way to levels of $ 0.95 – $ 0.90.
Royal Bank of Scotland: Australian dollar has lost in attractiveness by New Zealand dollar