13 Jan 2014
Flash: NZD/USD to trend higher this week - Westpac
FXstreet.com (Bali) - NZD/USD looks set to build on recent gains this week, notes Imre Speizer, FX Strategist at Westpac.
Key Quotes
"The NZD has been the outperformer of 2014. Fundamentals suggest that should continue."
"Our economic data pulse mode, which captures economic momentum, is riding high. Accordingly, the RBNZ is expected to start hiking in March, the first OECD central bank to do so this year."
"Indeed, recent strong data (such as GDP) has surprised the RBNZ such that it should raise the OCR by 125bp in 2014."
"With the US dollar stung by a weak payrolls report, the near term environment is positive for NZD/USD. We expect a break above resistance at 0.8300 to reach 0.8400 during the next week or two."
"Looking further ahead, by mid-2014 NZ’s strong fundamentals should be even more evident, taking NZD/USD towards 0.8600."
Key Quotes
"The NZD has been the outperformer of 2014. Fundamentals suggest that should continue."
"Our economic data pulse mode, which captures economic momentum, is riding high. Accordingly, the RBNZ is expected to start hiking in March, the first OECD central bank to do so this year."
"Indeed, recent strong data (such as GDP) has surprised the RBNZ such that it should raise the OCR by 125bp in 2014."
"With the US dollar stung by a weak payrolls report, the near term environment is positive for NZD/USD. We expect a break above resistance at 0.8300 to reach 0.8400 during the next week or two."
"Looking further ahead, by mid-2014 NZ’s strong fundamentals should be even more evident, taking NZD/USD towards 0.8600."