Sell Kiwi, Buy Aussie, $141 Billion Manager Says
- Kiwi has slipped 1.7 percent against the Aussie since April
- AMP Capital is also going long on Australian bonds: Naeimi
Photographer: Jack Atley/Bloomberg
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It’s time to get out of New Zealand’s currency, according to AMP Capital Investors Ltd. Instead, go long the Australian dollar on bets that the nation’s economy will outperform its neighbor across the Tasman Sea.
The premium that New Zealand’s bonds trade at over Australia is the narrowest it’s been, while in the case of 10 years it’s evaporated, according to Nader Naeimi, who heads a dynamic investment fund at AMP Capital. Real yields will likely dictate where the currencies are heading in the absence of central bank moves, he said.