2 Feb 2015
NZD/USD might below 0.71 levels in the medium-term – Westpac
FXStreet (Barcelona) - Imre Speizer of Westpac, mentions that NZD/USD negative momentum could continue over the medium term, noting that a break below 0.71 levels is likely for the pair, further adding that the pair may stage a rebound by late 2015 if commodity prices rise.
Key Quotes
“NZD/USD momentum remains negative, and although it’s fallen sharply since mid-July (-9%), we see nothing to halt a further push to 0.7120 during the weeks ahead, and possibly even lower.”
“Over the medium term, there remains potential for NZD/USD to fall further. The next major target is 0.7120. As long as the US dollar’s uptrend remains intact, a break below 0.71 is likely.”
“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 Fed tightening.”
Key Quotes
“NZD/USD momentum remains negative, and although it’s fallen sharply since mid-July (-9%), we see nothing to halt a further push to 0.7120 during the weeks ahead, and possibly even lower.”
“Over the medium term, there remains potential for NZD/USD to fall further. The next major target is 0.7120. As long as the US dollar’s uptrend remains intact, a break below 0.71 is likely.”
“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 Fed tightening.”