27 Jan 2015
NZD/USD comes with a short term bearish bias
FXStreet (Guatemala) - NZD/USD is currently trading at 0.7432 with a high of 0.7443 and a low of 0.7423.
NZD/USD has remained capped and pressured by the strong downward trend that has been in place since lowing the 0.77 handle last week. Pressures are mounting, with a greenback that has been favoured, attracting investment into T-Bills, with the 30 year only recently breaking fresh record lows. Plus, and moreover, the RBNZ had been sighted as needing to act on their policy, perhaps by the end of the year, by raising interest rates, but things have started to turn more neutral, as far as sentiment would have it in the market at least while we recall the downside surprise in Q4 CPI. The RBNZ next meeting will be under much surveillance for a confirmation of a shift of outlook form them.
For the near term, sentiment is bearish. However, Imre Speizer, analyst at Westpac Banking corporation suggests that by late 2015, the exchange rate should stage a rebound to the low-to-mid 0.80’s if NZ’s commodity prices rise in line with global demand and the temporary supply effects dissipate. "This, plus lingering positive risk sentiment, should offset any interest rate disadvantage resulting from the long-awaited Fed tightening."
NZD/USD has remained capped and pressured by the strong downward trend that has been in place since lowing the 0.77 handle last week. Pressures are mounting, with a greenback that has been favoured, attracting investment into T-Bills, with the 30 year only recently breaking fresh record lows. Plus, and moreover, the RBNZ had been sighted as needing to act on their policy, perhaps by the end of the year, by raising interest rates, but things have started to turn more neutral, as far as sentiment would have it in the market at least while we recall the downside surprise in Q4 CPI. The RBNZ next meeting will be under much surveillance for a confirmation of a shift of outlook form them.
For the near term, sentiment is bearish. However, Imre Speizer, analyst at Westpac Banking corporation suggests that by late 2015, the exchange rate should stage a rebound to the low-to-mid 0.80’s if NZ’s commodity prices rise in line with global demand and the temporary supply effects dissipate. "This, plus lingering positive risk sentiment, should offset any interest rate disadvantage resulting from the long-awaited Fed tightening."