Over the past month AUD/NZD has printed highs around 1.1170, its strongest levels since 2018. However, in late June, the pair faltered, trading mostly just below 1.10. Economists at Westpac believe AUD/NZD could slide to 1.08 in the near term, however, the pair is expected to recover above 1.12 later in the third quarter. 

Fair value looks to be around 1.12-1.13

“Near term, poor global risk sentiment including regarding China could see AUD/NZD back to the 1.08 handle for a while. But we expect the pair to rally beyond 1.12 later in Q3.”

“Fair value looks to be around 1.12-1.13.”

See: AUD/NZD to break the 1.12 top seen in 2018 and reach new highs – SocGen