AUD and NZD to consolidate before strengthing through the remainder of the year – CIBC

AUD and NZD have both made strong starts in 2023. Economists at CIBC Capital Markets expect Antipodeans currencies to stabilize before staging another leg higher.

Early year gains face near-term headwinds

“The current outlook is for some consolidation in both AUD and NZD before gains through the remainder of the year. The near-term prompt for that is a retracement and pause being seen in USD/CNH.”

“In the medium-term, the leverage of both the AUD and NZD to a significantly more constructive China outlook than previously anticipated is real, and is more so for AUD.”

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

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