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9 Feb 2015
NZD/USD momentum remains negative - Westpac
FXStreet (Barcelona) - Imre Speizer of Westpac views that NZD/USD momentum remains negative, and although it has fallen sharply since mid-July (-9%), there’s nothing to halt a further push to 0.7120 during the weeks ahead, and possibly even lower.
Key Quotes
“The combination of a strong US dollar trend plus an OCR which is likely to remain stuck at 3.5% for the next 1 1/2 years should keep the NZD/USD’s medium term decline intact, target 0.7100 by May.”
“Over the medium term, there remains potential for NZD/USD to fall further. The next major target is 0.7120, but as long as the US dollar’s uptrend remains intact, even lower is possible.”
“By late 2015, the exchange rate should stage a rebound towards the high 0.70’s if NZ’s commodity prices rise as we expect. This, plus lingering positive risk sentiment, should offset the interest rate disadvantage resulting from Fed tightening.”
Key Quotes
“The combination of a strong US dollar trend plus an OCR which is likely to remain stuck at 3.5% for the next 1 1/2 years should keep the NZD/USD’s medium term decline intact, target 0.7100 by May.”
“Over the medium term, there remains potential for NZD/USD to fall further. The next major target is 0.7120, but as long as the US dollar’s uptrend remains intact, even lower is possible.”
“By late 2015, the exchange rate should stage a rebound towards the high 0.70’s if NZ’s commodity prices rise as we expect. This, plus lingering positive risk sentiment, should offset the interest rate disadvantage resulting from Fed tightening.”