10 Mar 2015
Short NZD/USD, target 0.7217 - BNZ
FXStreet (Barcelona) - Raiko Shareef, Currency Strategist at BNZ, gives the trade setup for the Kiwi against the Dollar, anticipating USD strength to drag the pair lower towards 0.7217.
Key Quotes
“We finally entered the short NZD/USD position we’ve long discussed, at 0.7584, with an initial target of 0.7217, and a stop of 0.7714.”
“We’d note that this trade is dependent on a USD stronger across the board, rather than a secularly weak NZD. As such, we were heartened by February’s US labour market report, where the unemployment rate dropped to 5.5%. This is the top end of the Fed’s estimate of the ‘natural’ rate of unemployment (between 5.2% and 5.5%), and will only serve to build the case for a mid-2015 lift-off in rates.”
Key Quotes
“We finally entered the short NZD/USD position we’ve long discussed, at 0.7584, with an initial target of 0.7217, and a stop of 0.7714.”
“We’d note that this trade is dependent on a USD stronger across the board, rather than a secularly weak NZD. As such, we were heartened by February’s US labour market report, where the unemployment rate dropped to 5.5%. This is the top end of the Fed’s estimate of the ‘natural’ rate of unemployment (between 5.2% and 5.5%), and will only serve to build the case for a mid-2015 lift-off in rates.”