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We think the aussie and kiwi have a bit further to fall

We expect the aussie and the kiwi to weaken further against the US dollar and trough around mid-2023. And while we don’t expect the aussie to outperform the kiwi as it has recently, we think it will largely cling on to its recent gains and expect the AUD/NZD rate to remain around the top of its multi-year range.

In view of the wider interest, we are also sending this FX Markets Update to clients of our Australia and New Zealand Economics Service.

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