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NZD/USD expected to drop further – TDS

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Edinburgh) - According to strategists at TD Securities, the Kiwi dollar is seen resuming its downward projection in the near term.

    Key Quotes

    “The upcoming Q4 CPI reading (Tuesday/Wednesday) sets the stage for the RBNZ policy meeting in the following week”.

    “Here, we expect a print of –0.5% q/q, well below the market’s (-0.2%) and RBNZ’s forecasts”.

    “This should have the RBNZ intensify its easing bias, or at least make it more credible, as the January meeting comes packaged with a quarterly OCR review”.

    “At the same time, this week’s fortnightly dairy auction comes as milk powder futures prices have slid by nearly 12% since the previous auction (15 December)”.

    “This combination should keep pressure on the NZD to weaken further this week. For NZDUSD 0.6430 is the key pivot. A clear move lower from here targets support around 0.6235 ahead of the August spike low of 0.6130”.
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