ING Research flags a scope for a short-term correction in AUD/NZD towards 1.06.
"The resurgence of Covid-19 in the state of Victoria puts a dampener on what was looking like a “good” Pandemic for Australia. This will weigh on GDP growth in 2H20," ING notes.
"New Zealand remains a rare Covid-19-free economy in a diseaseridden world. This may work in favour of AUD/NZD downside in the short term (to the 1.06 area) given the asymmetry in virus situations between Australia and New Zealand," ING adds.