30 Jul 2013
Flash: NZD/USD upward momentum remains strong – Westpac
FXstreet.com (New York) - Global FX Strategist Sean Callow at Westpac, analyzes the short-term profile of the NZD/USD and New Zealand rates.
Key quotes
In terms of the NZD/USD, “Upward momentum remains strong, pointing to a test of the June peak of 0.8137 this week.”
Meanwhile, “Momentum has swung to the upside for NZ swap yields. NZ 2yr swaps should be well supported at 3.20%, and any break above 3.38% would then target 3.50%.”
Finally, regarding the NZ curve, “The combination of US events this weeks and a freshly hawkish RBNZ suggests curve flattening. The slope between 2yr and 10yr swap rates should flatten from 133bp to 125bp this week.”
Key quotes
In terms of the NZD/USD, “Upward momentum remains strong, pointing to a test of the June peak of 0.8137 this week.”
Meanwhile, “Momentum has swung to the upside for NZ swap yields. NZ 2yr swaps should be well supported at 3.20%, and any break above 3.38% would then target 3.50%.”
Finally, regarding the NZ curve, “The combination of US events this weeks and a freshly hawkish RBNZ suggests curve flattening. The slope between 2yr and 10yr swap rates should flatten from 133bp to 125bp this week.”