NZD/EUR: Multi-month decline remains intact - Westpac

NZD/EUR has been consolidating above 0.60 but the multimonth decline remains intact, targeting the 0.5900 area next, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Economic data has been solid, and the ECB is likely to start tapering its QE program late this year. The data calendar this week includes EZ industrial production and trade data, plus Q2 labour costs. The German elections loom on (24 Sep).”

“3 months ahead: European economic data is improving, witness sentiment surveys at multi-year highs. However, after easing recently, political tensions in the EU could still resurface, with Austria calling early elections in 4Q, and a chance of early elections in Italy. Barring political shocks, NZD/EUR should gravitate lower to the high 0.50s.”