7 Mar 2016
NZD/USD: plenty bulls left supporting target of 0.6900
NZD/USD is up with a rise in commodity prices and a soft greenback. The bird is up from 0.6771 and has reached a high of 0.6818, targeting 0.6880 and the vicinity of the 28th Dec highs.
WTI has been as a high as $38.13 and has rallied over 6% today on a short squeeze and could be a relief for the RBNZ who meet this week. "The RBNZ MPS will dominate the NZ calendar, but for the record, there is Q4 manufacturing (Tue), electronic spending (Wed), and manufacturing PMI and food prices (Fri)," explained Imre Speizer, analyst at Westpac, who added, "we expect the NZD will remain elevated, with a risk of a large rise if the RBNZ's tone is not sufficiently dovish.".
NZD/USD levels
NZD/USD's broke the 0.6550-0.6750 recently post the nonfarm payrolls USD sell-off and remains bid above the cluster of the daily sma's around the 100 dam at 0.6638, en route for aforementioned 2015 Dec highs. Further out, Imre Speizer explained that their macro-economic based forecast for one-year ahead is 0.62, "Based mainly on the OCR being cut by another 50bp to 2.0% and the Fed rate to rise further from 0.375% this year."
WTI has been as a high as $38.13 and has rallied over 6% today on a short squeeze and could be a relief for the RBNZ who meet this week. "The RBNZ MPS will dominate the NZ calendar, but for the record, there is Q4 manufacturing (Tue), electronic spending (Wed), and manufacturing PMI and food prices (Fri)," explained Imre Speizer, analyst at Westpac, who added, "we expect the NZD will remain elevated, with a risk of a large rise if the RBNZ's tone is not sufficiently dovish.".
NZD/USD levels
NZD/USD's broke the 0.6550-0.6750 recently post the nonfarm payrolls USD sell-off and remains bid above the cluster of the daily sma's around the 100 dam at 0.6638, en route for aforementioned 2015 Dec highs. Further out, Imre Speizer explained that their macro-economic based forecast for one-year ahead is 0.62, "Based mainly on the OCR being cut by another 50bp to 2.0% and the Fed rate to rise further from 0.375% this year."