Westpac Research notes:
AUD/NZD 1 day: The reversal which started two days ago has the potential run much lower. We target 1.1115 during the days ahead. The sharp fall in iron ore prices recently will weigh.
AUD/NZD 1-3 month: The RBA will probably remain on hold (albeit with easing risk), while the RBNZ is currently in easing mode. Expected RBA vs RBNZ direction thus favours AUD/NZD over the medium term. The next major target is 1.1580.


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