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4 Nov 2013
Flash: NZD/USD outlook bearish this week - Westpac
FXstreet.com (Barcelona) - The NZD/USD bias for this week is likely to remain torn, notes Imre Speizer FX Strategist at Westpac, in a combination of a supportive RBNZ - tightening expectations - and a combatant US dollar.
Key Quotes
"Last week at the OCR Review, the RBNZ reiterated its intention to hike in 2014, and Governor Wheeler repeated that line over
the weekend to the media. Such constant reminders will keep the NZD supported into next year."
Against that, the US dollar appears likely to continue last week’s rebound, mainly because it has been battered so much during the past few months, and also because sentiment towards the US economy has become extremely downbeat."
"The US dollar is ripe for a decent near term rally. However, longer term, US fiscal risks will keep Fed tapering at bay until well into Q2 2014. Near term, the US dollar’s pull should dominate, putting 0.8190 at risk. Longer term, we target 0.8600 by Mar-14."
Key Quotes
"Last week at the OCR Review, the RBNZ reiterated its intention to hike in 2014, and Governor Wheeler repeated that line over
the weekend to the media. Such constant reminders will keep the NZD supported into next year."
Against that, the US dollar appears likely to continue last week’s rebound, mainly because it has been battered so much during the past few months, and also because sentiment towards the US economy has become extremely downbeat."
"The US dollar is ripe for a decent near term rally. However, longer term, US fiscal risks will keep Fed tapering at bay until well into Q2 2014. Near term, the US dollar’s pull should dominate, putting 0.8190 at risk. Longer term, we target 0.8600 by Mar-14."