29 Apr 2015
Neutral bias for NZD/USD in the very near term – Westpac
FXStreet (Edinburgh) - In light of the imminent RBNZ meeting, strategists at Westpac reiterated their neutral stance on the pair.
Key Quotes
“The pullback in the US dollar should continue to support NZD/USD although watch out for a bearish reaction to a probably dovish RBNZ this Thursday”.
“RBNZ Asst. Gov. McDermott’s speech on inflation last week signalled a probable shift in stance to a conditional easing bias”.
“NZD TWI is over 3% higher than the RBNZ previously forecast and will surely be worthy of comment”.
“We expect NZD/USD to rise towards 0.7750 before the RBNZ, and then sell off towards 0.7550 in response”.
“We thus hold a neutral bias for the week”.
“Last week’s corrective decline failed to close below the pivotal 100 day moving average, keeping the 8 week uptrend intact. Anticipate a further steady rise”.
Key Quotes
“The pullback in the US dollar should continue to support NZD/USD although watch out for a bearish reaction to a probably dovish RBNZ this Thursday”.
“RBNZ Asst. Gov. McDermott’s speech on inflation last week signalled a probable shift in stance to a conditional easing bias”.
“NZD TWI is over 3% higher than the RBNZ previously forecast and will surely be worthy of comment”.
“We expect NZD/USD to rise towards 0.7750 before the RBNZ, and then sell off towards 0.7550 in response”.
“We thus hold a neutral bias for the week”.
“Last week’s corrective decline failed to close below the pivotal 100 day moving average, keeping the 8 week uptrend intact. Anticipate a further steady rise”.