4 Aug 2015
NZD/USD could drop to 0.59 end-2016 – TDS
FXStreet (Edinburgh) - According to strategists at TD Securities, the pair could fall towards the 0.59 area by the end of 2016.
Key Quotes
“The RBNZ easing bias from April and 50bp of cuts in June/July has placed considerable downward pressure on the NZD (and TWI) so we again lowered our NZD targets”.
“However, net short positions remain quite stretched and a cash rate of 2.75% is priced in, so we do not see material downside from here in the near-term”.
“We target $US0.65 by year end, and $US0.59 by end-2016”.
Key Quotes
“The RBNZ easing bias from April and 50bp of cuts in June/July has placed considerable downward pressure on the NZD (and TWI) so we again lowered our NZD targets”.
“However, net short positions remain quite stretched and a cash rate of 2.75% is priced in, so we do not see material downside from here in the near-term”.
“We target $US0.65 by year end, and $US0.59 by end-2016”.