AUD/NZD: Correlations update

Part 2:

Here's the correlation chart for AUD/NZD. Interest rate differentials pretty much match the current spot price, so it's the Australian vs New Zealand stock market ratio that we're focusing on (blue line)

The chart shows a strong divergence between the exchange rate and the AU/NZ stock markets, which hints at the possibility of a stronger NZD in the coming period.