NZD/JPY rebound should extend to 78.80 - Westpac

Imre Speizer, Research Analyst at Westpac, explains that the improvement in global risk sentiment continues to favour the NZD over the risk-averse JPY, resulting in the rebound in NZD/JPY cross which should extend to 78.80 during the week ahead.

Key Quotes

“With the end of month splurge of data and the BoJ out the way, Golden Week in full swing and the week ahead is quiet in Japan. However, we do have a few events to keep an eye out for. Next Thursday sees the weekly MOF portfolio flow data, the balance of payments data and the eco watchers survey all released.”

“3 months ahead: The BOJ’s defacto tapering of its asset purchases should support the yen. In addition, bouts of Trump disappointment will weigh on risk sentiment and boost the safe-haven yen. We see NZD/JPY remaining below 80 over the next few months.”