Citi maintain a bullish bias on AUD in general and on AUD/NZD in particular.
"Q2 CPI was in-line with Citi Economics’ view, and slightly above consensus. Headline CPI fell by 1.9% in Q2, which was in-line with our advanced preview, while the market was expecting a 2% fall. In yearly terms, the CPI was down -0.3%," Citi notes.
"As for the road ahead, CitiFX Strategy remains bullish AUDNZD based on: (i) diverging monetary policy; (ii) sizeable relative improvement in Australia’s current account; (iii) positive technical setup. More broadly we also maintain our broad-based structural bullish view on AUD into 2H 2020,"Citi adds.