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26 Feb 2015
NZD/USD to extend towards 0.7700 by next week – Westpac
FXStreet (Barcelona) - Imre Speizer of Westpac, gives the week ahead outlook for NZD/USD, stating that an extension towards 0.7700 won’t be surprising.
Key Quotes
“The recent rally is likely to extend next week. We target at least the 0.7610-0.7620 area (those were the main lows last Dec) but a run as far as 0.7700 would not surprise.”
“NZ’s economic data pulse is currently running hot, with dairy prices rising, migration at record levels, and the domestic economy in solid shape.”
“Combined with USD’s stall plus speculative positioning short NZD, an argument for multiweek NZD/USD strength can easily be made.”
“Further out, we expect a reversal in the NZ data pulse by April, and are more constructive on the US dollar, implying a decline in NZD/USD to 0.7100 by mid-year.”
Key Quotes
“The recent rally is likely to extend next week. We target at least the 0.7610-0.7620 area (those were the main lows last Dec) but a run as far as 0.7700 would not surprise.”
“NZ’s economic data pulse is currently running hot, with dairy prices rising, migration at record levels, and the domestic economy in solid shape.”
“Combined with USD’s stall plus speculative positioning short NZD, an argument for multiweek NZD/USD strength can easily be made.”
“Further out, we expect a reversal in the NZ data pulse by April, and are more constructive on the US dollar, implying a decline in NZD/USD to 0.7100 by mid-year.”