12 Jul 2013
Flash: NZD/USD outlook remains one month out – Westpac
FXstreet.com (New York) - According to Sean Callow, a Global FX Strategist at Westpac, “We have flipped to a positive NZD/USD bias for the week ahead but remain negative one month out and beyond.”
Speculative NZD/USD futures positioning has swung from a record long state to short in the space of three months. This sharp repositioning left the NZD stretched to the downside and vulnerable to a short squeeze. The catalyst for such a squeeze was the dovish tilt by the Fed Chairman. “We target the 0.8060-0.8180 area during the week ahead. Beyond that though, we expect the three-month downtrend to resume to sub-0.77, assuming Fed tapering remains on track.” Callow adds.
Speculative NZD/USD futures positioning has swung from a record long state to short in the space of three months. This sharp repositioning left the NZD stretched to the downside and vulnerable to a short squeeze. The catalyst for such a squeeze was the dovish tilt by the Fed Chairman. “We target the 0.8060-0.8180 area during the week ahead. Beyond that though, we expect the three-month downtrend to resume to sub-0.77, assuming Fed tapering remains on track.” Callow adds.