28 Jun 2013
Flash: NZD/USD a sell on bounces – Westpac
FXstreet.com (New York) - Next week’s calendar is fairly bare, apart from monthly commodity prices (Tuesday), which is dated information – there’s also Global Dairy Trade auction which will be watched, notes Global FX Strategist Sean Callow at Westpac.
According to Callow, “We retain our sell-on-bounces bias. The NZD/USD is consolidating just above a 12-month low at 0.7685 and it appears a matter of time before that level gives way.” Medium-term downside targets are 0.7460 and then 0.7200.”
Moreover, a Fed inspired strong US dollar remains the main influence, but a slightly weaker NZ data pulse (due to the summer drought) and a gradual buildup of short NZD speculative positions are factors, which should start making an appearance during the weeks ahead.
According to Callow, “We retain our sell-on-bounces bias. The NZD/USD is consolidating just above a 12-month low at 0.7685 and it appears a matter of time before that level gives way.” Medium-term downside targets are 0.7460 and then 0.7200.”
Moreover, a Fed inspired strong US dollar remains the main influence, but a slightly weaker NZ data pulse (due to the summer drought) and a gradual buildup of short NZD speculative positions are factors, which should start making an appearance during the weeks ahead.