30 Jul 2015
NZD/USD targets 0.62 by year-end – Westpac
FXStreet (Edinburgh) - Imre Speizer, Strategist at Westpac, expects the pair to grind lower towards the 0.62 area in the last part of the year.
Key Quotes
“We expect NZD/USD to resume its downward trend during the next few months, targeting 0.62 or lower by year end. The US dollar outlook is positive while NZ’s economy is losing steam. However there’s scope for a near term bounce if large short NZD positions are pared”.
“The technical picture is potentially bullish in the near term for a number of reasons. First, a descending trend channel was broken two days ago at 0.6630 with a projection to 0.6900. Second, momentum between the 7 and 16 July descending lows increased, according to indicators such the RSI. Momentum and price divergences are typically reveral signals. Finally, short moving averages have crossed upwards”.
“Our medium term (multi-month) outlook for NZD/USD remains negative for much the same reasons - USD strength driven by the Fed tightening combined with a NZ economic slowdown. We target 0.62 by October this year. Should this corrective bounce extend, we would see that as an opportunity to reinstate the short NZD/USD position we held since early June and closed this week”.
Key Quotes
“We expect NZD/USD to resume its downward trend during the next few months, targeting 0.62 or lower by year end. The US dollar outlook is positive while NZ’s economy is losing steam. However there’s scope for a near term bounce if large short NZD positions are pared”.
“The technical picture is potentially bullish in the near term for a number of reasons. First, a descending trend channel was broken two days ago at 0.6630 with a projection to 0.6900. Second, momentum between the 7 and 16 July descending lows increased, according to indicators such the RSI. Momentum and price divergences are typically reveral signals. Finally, short moving averages have crossed upwards”.
“Our medium term (multi-month) outlook for NZD/USD remains negative for much the same reasons - USD strength driven by the Fed tightening combined with a NZ economic slowdown. We target 0.62 by October this year. Should this corrective bounce extend, we would see that as an opportunity to reinstate the short NZD/USD position we held since early June and closed this week”.