15 Jul 2015
Kiwi dollar remains on the bearish side – Westpac
FXStreet (Edinburgh) - According to strategists at Westpac, further weakness lies ahead for NZD vs. the greenback.
Key Quotes
“We remain bearish on NZD/USD and target 0.6560 (2010 low) this week”.
“The NZ economy continues to lose momentum, dairy prices remain vulnerable (there’s an auction this Wednesday during the Lon/NY session) and RBNZ is likely to cut the OCR next week”.
“Add to that the global uncertainty from Greece and China, and reaffirmation US tightening is expected this year, and it’s clear the macroeconomic backdrop for the NZD is negative”.
“The main obstacle to near term downside is the record level of speculative shorts in the NZD/USD futures market”.
“Recent short term bounce has failed to gain traction, amid a powerful negative medium term/long term momentum bias. Medium term/long term downtrend remains in play. Medium term target at 0.6371/0.6403”.
Key Quotes
“We remain bearish on NZD/USD and target 0.6560 (2010 low) this week”.
“The NZ economy continues to lose momentum, dairy prices remain vulnerable (there’s an auction this Wednesday during the Lon/NY session) and RBNZ is likely to cut the OCR next week”.
“Add to that the global uncertainty from Greece and China, and reaffirmation US tightening is expected this year, and it’s clear the macroeconomic backdrop for the NZD is negative”.
“The main obstacle to near term downside is the record level of speculative shorts in the NZD/USD futures market”.
“Recent short term bounce has failed to gain traction, amid a powerful negative medium term/long term momentum bias. Medium term/long term downtrend remains in play. Medium term target at 0.6371/0.6403”.