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Sep 01 - 12:55 AM

AUD, NZD: China’s Slowdown A Risk For Both, But NZD Looking Better Than AUD - ING

By eFXdata  —  Aug 31 - 04:30 PM

ING Research discusses AUD and NZD outlook and sees a scope for further AUD/NZD downside.

"In G10, the deteriorating growth outlook in China remains a key risk to the ability of AUD and NZD to fully benefit from a further recovery in high-beta currencies. AUD, however, is generally more exposed than NZD given the higher percentage of exports heading to China and the strict relationship between China’s growth sentiment and iron ore prices – which remain at risk of more downside corrections despite some signs of stabilisation in the past few days," ING notes. 

"Incidentally, NZD is more attractive than AUD considering the monetary policy outlook, as the RBNZ should start tightening in October (which is, by the way, not fully priced in yet) while the RBA might actually pause its tapering plans due to the worsening contagion picture," ING adds. 

Source:
ING Research/Market Commentary

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