1. Hello Guest Do you know binary.com offers exclusive $20 No Deposit Bonus for FX Binary Point visitors? Click here to sign up

NZDUSD to adopt bullish bias for the week - Westpac

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 2, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Joined:
    Oct 7, 2015
    Messages:
    27,524
    Likes Received:
    0
    FXStreet (Delhi) - Imre Speizer, Senior Markets Strategist at Westpac, suggests that the NZDUSD will adopt a bullish bias this week, targeting the 0.6800-0.6900 area.

    Key Quotes

    “NZD/USD has performed well since the resurgence of the US dollar on 22 October, outperforming all the majors over the period since. And despite dairy prices set to post a second modest decline this week, the NZD should retain support from the RBNZ's less dovish stance indicated on 29 Oct.”

    Week ahead: NZD/USD has performed well since the resurgence of the US dollar on 22 October, outperforming all the majors over the period since. And despite dairy prices set to post a second modest decline this week, the NZD should retain support from the RBNZ’s less dovish stance indicated on 29 Oct.”

    “The NZ event calendar highlight this week is the set of Q3 labour reports on Wednesday, which will give us updated readings on unemployment, employment growth and wage inflation. We expect employment growth to increase slightly to 0.4% (qoq) but strong inward migration should elevate the unemployment rate from 5.9% to 6.2%. Wage growth may pick up slightly but remain low. On Tuesday we have QV house prices.”

    3 months ahead: Multi-month, we see the NZ economy slowing, the RBNZ easing in December, and the Fed possibly tightening the same month. We target 0.63. The main risk to this bearish view is the Fed delays its tightening cycle beyond December. A secondary risk is the RBNZ doesn’t cut in December.”

    1 year ahead: Our 1 year ahead forecast is 0.62, based partly on the OCR being cut to 2.0%.”
    For more information, read our latest forex news.
     

Share This Page