8 Jul 2013
Flash: NZD/USD break to downside looms – Westpac
FXstreet.com (New York) - According to Global FX Strategist Sean Callow at Westpac, “The NZD/USD is stuck in a 0.7685-0.7860 range for two weeks, but a break to the downside looms.”
In addition, the uptrend in NZ yields remains intact, higher US rates the main story in town. The next target for NZ 2yr swaps is 3.50%, while the 5yr should head towards 4.25%. Finally, “regarding the NZ curve: Higher US yields are steepening the NZ curve because the RBNZ has anchored the short end. We expect the 2-10yr swap curve to test 140bp this week or next.” Callow adds.
In addition, the uptrend in NZ yields remains intact, higher US rates the main story in town. The next target for NZ 2yr swaps is 3.50%, while the 5yr should head towards 4.25%. Finally, “regarding the NZ curve: Higher US yields are steepening the NZ curve because the RBNZ has anchored the short end. We expect the 2-10yr swap curve to test 140bp this week or next.” Callow adds.