AUD/NZD: There is room for a to move back closer to the 1.1000 level – MUFG

AUD/NZD has diverged from yield spreads this month. Economists at MUFG Bank analyze the pair’s outlook.

NZD has benefitted more from the improvement in global investor risk sentiment 

In the FX market, the recent widening of yield spreads in favour of the Australian Dollar over the New Zealand Dollar has not been fully reflected in the AUD/NZD rate. 

Kiwi has benefitted more this month from the improvement in global investor risk sentiment. 

Yield spreads indicate that there is room for AUD/NZD to move back closer to the 1.1000 level.