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10 Mar 2014
Flash: NZD/USD outlook up this week - Westpac
FXStreet (Bali) - According to Imre Speizer, FX Strategist at Westpac, NZD/USD is biased towards further upside as we approach the start of the RBNZ’s tightening cycle.
Key Quotes
"While a 25bp hike is fully priced, there is scope for a market reaction if a fast start to the cycle is implied in the RBNZ’s interest rate projections which will be published in the statement."
"Last week’s break above 0.8430 paves the way to 0.8545 (October high), and above that then points to beyond 0.8600."
"A key risk to our outlook is the behaviour of the US dollar. However, we see April as the earliest opportunity for a more meaningful breakout in the USD (to the topside), with that month likely to deliver the first clean(er) read on underlying US growth momentum and by then Westpac’s US data surprise index is likely to be at levels that warn the disappointing data cycle is close to completion."
Key Quotes
"While a 25bp hike is fully priced, there is scope for a market reaction if a fast start to the cycle is implied in the RBNZ’s interest rate projections which will be published in the statement."
"Last week’s break above 0.8430 paves the way to 0.8545 (October high), and above that then points to beyond 0.8600."
"A key risk to our outlook is the behaviour of the US dollar. However, we see April as the earliest opportunity for a more meaningful breakout in the USD (to the topside), with that month likely to deliver the first clean(er) read on underlying US growth momentum and by then Westpac’s US data surprise index is likely to be at levels that warn the disappointing data cycle is close to completion."