The Aussie fell to a record low against the NZD on Monday, as the divergence of monetary policy of the RBA and the RBNZ weighing on the AUD. The RBA is expected to cut the interest rate given signs of weakness in the economy (though market pricing does imply that a rate hike is unlikely at the February meeting). On the other hand, the RBNZ signalled that the central bank is still in a tightening cycle and future rates will come at later stage. RBA rate cut expectations will grow in early 2015 and that would push AUD/NZD to parity.
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