26 Jul 2013
Flash: NZD/USD could mid 0.70s if Fed tapering starts – Westpac
FXstreet.com (New York) - Global Markets Strategist Sean Callow at Westpac analyzes the short-term outlook of the NZD/USD.
Key quotes
“We retain our positive bias for the NZD/USD another week but remain negative out to three months.”
“Our near term stance is motivated by the hawkish shift in RBNZ stance, speculative NZD/USD futures positioning which is now short and vulnerable to a squeeze; increased inflows from offshore into NZGBs during the past two weeks, and upward technical momentum which implies a near term rally to the 0.8050-0.8300 area.”
“By September, though, we expect to see it in the low-mid-0.70’s if Fed tapering starts.”
Key quotes
“We retain our positive bias for the NZD/USD another week but remain negative out to three months.”
“Our near term stance is motivated by the hawkish shift in RBNZ stance, speculative NZD/USD futures positioning which is now short and vulnerable to a squeeze; increased inflows from offshore into NZGBs during the past two weeks, and upward technical momentum which implies a near term rally to the 0.8050-0.8300 area.”
“By September, though, we expect to see it in the low-mid-0.70’s if Fed tapering starts.”