7 Aug 2013
Flash: NZD/USD to resume slide towards 0.7200? – Westpac
FXstreet.com (New York) - Sean Callow, a Global FX Strategist at Westpac analyzes the outlook for the NZD/USD, coupled with NZ rates.
Key quotes
“We adopt a cautious bearish stance towards NZD/USD and require a break below 0.7685 to confirm to us that the NZD is indeed resuming its multi-month slide towards 0.7200.”
Regarding NZ rates, “NZ yields should be capped by lower US yields as well as the Fonterra product recall. 2yr swaps could fall as far as 3.20%, while the 5yr could fall to 4.00%. Meanwhile, both near-term and long-term factors point to the NZ curve flattening.”
Key quotes
“We adopt a cautious bearish stance towards NZD/USD and require a break below 0.7685 to confirm to us that the NZD is indeed resuming its multi-month slide towards 0.7200.”
Regarding NZ rates, “NZ yields should be capped by lower US yields as well as the Fonterra product recall. 2yr swaps could fall as far as 3.20%, while the 5yr could fall to 4.00%. Meanwhile, both near-term and long-term factors point to the NZ curve flattening.”