In the view of the analysts at Goldman Sachs, the Antipodeans are likely to remain weaker against the US dollar. The kiwi dollar, however, is likely to outperform its Australian counterpart.

Key quotes

“Our views on the RBA are fairly dovish, as the economy faces softer wage and inflation dynamics, and risks from a potential slowdown in Chinese growth. Our forecasts for AUD, as a result, are fairly negative versus USD over a 12-month horizon. “

“In contrast, our forecasts for the RBNZ are far less dovish, though our projections of the terminal rate are lower than market expectations, and we expect NZD to be dragged down vs USD along with AUD.”

“Despite our forecasts for AUD and NZD lower vs USD, we still prefer NZD to AUD and project downside in AUD/NZD over the next 12 months.”