Westpac Research notes:
AUD/NZD 1 day: Yesterday's reversal suggests a move down to 1.1300 today. Iron ore has traded poorly recently, while today's retail sales report will shed some light on domestic demand ahead of next week's RBA meeting.
AUD/NZD 1-3 month: The RBA will probably remain on hold (albeit with easing risk), while the RBNZ is currently in easing mode. Expected RBA vs RBNZ direction thus favours AUD/NZD over the medium term. The next major target is 1.1580.


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