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17 Jan 2013
Forex Flash: NZD/USD to rest 0.8477 on rising NZ rates and dairy prices – Westpac
FXstreet.com (Barcelona) - According to Sean Callow, a Global Markets Strategist at Westpac, “The broad contours for a decent risk rally and trend depreciation of the USD remain in place – euro break up risk continues to dissipate with Italian and Spanish sovereign risk premiums still trending lower.”
The event risk for the NZD/USD is not until the RBNZ meeting scheduled on the 31 of January. Westpac expects zero quarterly change (Q4 is seasonally low), which would produce an annual rate of 1.1%, however a negative print is quite possible. Next week is light event-wise, only PMI and credit card spending (Thursday).
According to Sean Callow, a Global Markets Strategist at Westpac, “The NZD/USD outlook remains positive, despite the consolidation since 11 January. In the near term, it is vulnerable to this correction extending to around 0.8300 (a potential catalyst is tomorrow’s CPI release) though we would view such a dip as a buying opportunity. Prior to the US debt ceiling debate mid-February we expect NZD/USD to test 0.8477, assisted by rising NZ interest rates and dairy prices.”
The event risk for the NZD/USD is not until the RBNZ meeting scheduled on the 31 of January. Westpac expects zero quarterly change (Q4 is seasonally low), which would produce an annual rate of 1.1%, however a negative print is quite possible. Next week is light event-wise, only PMI and credit card spending (Thursday).
According to Sean Callow, a Global Markets Strategist at Westpac, “The NZD/USD outlook remains positive, despite the consolidation since 11 January. In the near term, it is vulnerable to this correction extending to around 0.8300 (a potential catalyst is tomorrow’s CPI release) though we would view such a dip as a buying opportunity. Prior to the US debt ceiling debate mid-February we expect NZD/USD to test 0.8477, assisted by rising NZ interest rates and dairy prices.”