Goldman Sachs strategists recommend long AUD/NZD position
- target 1.12
- stop loss 1.03
Reasoning Australia has:
- stronger external balance
- better job market protections
- lower exposure to tourism
- substantial fiscal stimulus
- better prospects to benefit from demand stimulus in China
And thus Australia should have a stronger position for recovery in economic growth.
GS also say that rate differentials are in Australia's favour, RBA says it has no appetite for negative rates.
GS forecasts for the cross:
- 3 months 1.12 (from prior 1.00)
- 6 months 1.13 (1.02)
- 12 months 1.15 (1.04)
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Past 2 weeks have been good for the cross:
