NZD/EUR downtrend could break below the 0.58 area – Westpac

The NZD/EUR downtrend extended further last week, and could break below the 0.58 area during the weeks ahead, suggests Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Persistently strong surveys imply that Eurozone’s solid growth will continue in Q4. The event calendar this week includes EZ Q3 GDP and EZ CPI (31st) GE U/empl. and final Oct PMIs (2 Nov).”

“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 disconcerting rises in periphery parties in Germany and the prospect of Italian elections in H1 18. A German coalition may take months to form. Barring political shocks, though, NZD/EUR should gravitate lower towards 0.56.”