Institutional analysis: AUD/NZD may fall further

NZD strength is easier to understand after the RBNZ hiked rates by 75bps and released a more hawkish expected path for the official cash rate (OCR). While NZD/USD has failed to break above 0.62, AUD/NZD has hit its lowest level since March.

If relative commodity prices continue to trend in favor of the NZD, AUD/NZD could see further losses, but this is the seventh day in a row that AUD/NZD has fallen so the decline should probably pause for a while.