16 Feb 2015
NZD/USD medium term target 0.7120 – Westpac
FXStreet (Barcelona) - Imre Speizer of Westpac, gives the near-term, medium-term and 1-year outlook for NZD/USD, expecting the pair to move lower towards 0.7120 over the next 3-months.
Key Quotes
“1 week:This two-week old bounce in NZD/USD probably has further to run, our multi-week target 0.7600.“
“Speculators are currently very short the NZD, but there has been little for NZD bears to latch onto.”
“The RBNZ Governor recently cold water on the idea of OCR cuts, NZ economic data has been supportive, and dairy prices have bounced. As for the US dollar, it has taken a breath after a heady rally during the past year.”
“3 months: Over the medium term, there remains potential for NZD/USD to fall further. The next major target is 0.7120, but as long as the US dollar’s uptrend remains intact, even lower is possible.”
“By late 2015, the exchange rate should stage a rebound towards the high 0.70’s if NZ’s commodity prices rise as we expect. This, plus the risk-seeking atmosphere resulting from more of the global economy participating in recovery, should offset the interest rate disadvantage resulting from Fed tightening.”
Key Quotes
“1 week:This two-week old bounce in NZD/USD probably has further to run, our multi-week target 0.7600.“
“Speculators are currently very short the NZD, but there has been little for NZD bears to latch onto.”
“The RBNZ Governor recently cold water on the idea of OCR cuts, NZ economic data has been supportive, and dairy prices have bounced. As for the US dollar, it has taken a breath after a heady rally during the past year.”
“3 months: Over the medium term, there remains potential for NZD/USD to fall further. The next major target is 0.7120, but as long as the US dollar’s uptrend remains intact, even lower is possible.”
“By late 2015, the exchange rate should stage a rebound towards the high 0.70’s if NZ’s commodity prices rise as we expect. This, plus the risk-seeking atmosphere resulting from more of the global economy participating in recovery, should offset the interest rate disadvantage resulting from Fed tightening.”