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)”