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18 Apr 2013
Forex Flash: NZD/USD strategy profile – Westpac
FXstreet.com (Barcelona) - The RBNZ’s OCR review (Wednesday - a day earlier than usual due to ANZAC holiday) is the local highlight next week. According to Global FX Strategist at Westpac, “Further improvements in activity, milk prices, business confidence and housing will be balance by further strength in the NZD but the net tone of the one-pager should imply an upgrade to the OCR outlook.” Other releases include migration (Monday), credit card spending (Monday), and the trade balance (Friday).
Global risks have dominated strong NZ fundamentals lately, flipping NZD/USD momentum to the downside. “Given the sharp recent breakdowns in key global markets such as the S&P 500 and copper and gold, we adopt a bearish bias for the weeks ahead, allowing for as low as 0.8235 (rising channel support). Crosses which better reflect relative fundamentals, such as AUD/NZD, are a better bullish-NZD bet.” Callow adds.
Global risks have dominated strong NZ fundamentals lately, flipping NZD/USD momentum to the downside. “Given the sharp recent breakdowns in key global markets such as the S&P 500 and copper and gold, we adopt a bearish bias for the weeks ahead, allowing for as low as 0.8235 (rising channel support). Crosses which better reflect relative fundamentals, such as AUD/NZD, are a better bullish-NZD bet.” Callow adds.