19 Jan 2015
NZD/USD bid but for how long?
FXStreet (Guatemala) - NZD/USD is currently trading at 0.7773 with a high of 0.7811 and a low of 0.7772 and down 0.16% on the day.
NZD/USD is consolidated in the upper end of the 0.77 handle after making a multi-year low at 0.7609 lat month on the 9th of December. The bulls are taking back control with targets above that could make life in the Kiwi interesting at 0.7890 ahead of 0.7975 towards 0.8035, levels noted by analyst at Westpac Banking corporation. "Supporting this view is the gradual exiting of speculative NZD short positions, and the waning of upside US data surprises which has not yet been responded to by the US dollar".
Fundamentals from the calendar this week come with, of course the ECB meeting and subsequent market volatility on the 22nd, but also with this Wednesday’s Q4 CPI. "The data will also focus market attention on forecasts for Q1 inflation, these likely to be alarmingly low. Thus, we see downside risks for the NZD on the day", explained Imre Speizer, analyst at Westpac Banking Corporation.
NZD/USD medium term outlook; bearish
Imre Speizer commented over a three month outlook and said, "Over the medium term, there remains potential for NZD/USD to fall to 0.7500 during the first quarter of 2015. Dairy commodities remain in a downtrend, and the US dollar’s powerful uptrend remains intact (notwithstanding its stretched condition near term). Moreover, Q4 inflation is expected to slip below the bottom of the RBNZ’s 1%-3% target band, encouraging the amrket to start pricing in RBNZ rate cuts".
NZD/USD is consolidated in the upper end of the 0.77 handle after making a multi-year low at 0.7609 lat month on the 9th of December. The bulls are taking back control with targets above that could make life in the Kiwi interesting at 0.7890 ahead of 0.7975 towards 0.8035, levels noted by analyst at Westpac Banking corporation. "Supporting this view is the gradual exiting of speculative NZD short positions, and the waning of upside US data surprises which has not yet been responded to by the US dollar".
Fundamentals from the calendar this week come with, of course the ECB meeting and subsequent market volatility on the 22nd, but also with this Wednesday’s Q4 CPI. "The data will also focus market attention on forecasts for Q1 inflation, these likely to be alarmingly low. Thus, we see downside risks for the NZD on the day", explained Imre Speizer, analyst at Westpac Banking Corporation.
NZD/USD medium term outlook; bearish
Imre Speizer commented over a three month outlook and said, "Over the medium term, there remains potential for NZD/USD to fall to 0.7500 during the first quarter of 2015. Dairy commodities remain in a downtrend, and the US dollar’s powerful uptrend remains intact (notwithstanding its stretched condition near term). Moreover, Q4 inflation is expected to slip below the bottom of the RBNZ’s 1%-3% target band, encouraging the amrket to start pricing in RBNZ rate cuts".