4 May 2015
NZD/USD bearish target at 0.7420 – Westpac
FXStreet (Barcelona) - Imre Speizer of Westpac, sees further weakness ahead for NZD/USD, targeting 0.7420 levels in the near-term, and 0.72 over the next 3 months.
Key Quotes
“NZD/USD broke down last Thursday, with bearish implications for the week ahead. We target 0.7420 – the mid-April low.”
“NZ macroeconomic factors this week mainly argue for a weaker NZD, while US factors argue for a weaker USD. Positioning is a positive, speculators still rebalancing from a net short state. Technicals are arguably negative near term. Combining all the above, we tilt to a slightly negative outlook for the week.”
“3 months ahead: Lower to 0.72 . Near-zero inflation will encourage markets to price in even more RBNZ easing.”
“1 year ahead: Lower to 0.71. The RBNZ is on hold for the next two years (with a non-trivial chance of cutting), while the Fed is expected to tighten this year.”
Key Quotes
“NZD/USD broke down last Thursday, with bearish implications for the week ahead. We target 0.7420 – the mid-April low.”
“NZ macroeconomic factors this week mainly argue for a weaker NZD, while US factors argue for a weaker USD. Positioning is a positive, speculators still rebalancing from a net short state. Technicals are arguably negative near term. Combining all the above, we tilt to a slightly negative outlook for the week.”
“3 months ahead: Lower to 0.72 . Near-zero inflation will encourage markets to price in even more RBNZ easing.”
“1 year ahead: Lower to 0.71. The RBNZ is on hold for the next two years (with a non-trivial chance of cutting), while the Fed is expected to tighten this year.”