AUD and NZD to consolidate earlier than strengthing by means of the rest of the 12 months – CIBC

AUD and NZD have each made robust begins in 2023. Economists at CIBC Capital Markets anticipate Antipodeans currencies to stabilize earlier than staging one other leg increased.

Early 12 months positive aspects face near-term headwinds

“The present outlook is for some consolidation in each AUD and NZD earlier than positive aspects by means of the rest of the 12 months. The near-term immediate for that could be a retracement and pause being seen in USD/CNH.”

“Within the medium-term, the leverage of each the AUD and NZD to a considerably extra constructive China outlook than beforehand anticipated is actual, and is extra so for AUD.”

“Q1 2023: 0.68 | Q2 2023: 0.69 (AUD/USD)”

“Q1 2023: 0.63 | Q2 2023: 0.63 (NZD/USD)”