23 Aug 2013
Flash: NZD/USD to gradually fall towards 0.75 - ANZ
FXstreet.com (Barcelona) - According to David Croy, FX Strategist at ANZ, Fed tapering along with normalisation of policy settings in the US should lead to a gradual fall in NZD/USD towards 0.75 by the end of 2014.
Key Quotes
"That’s a reasonable fall from current levels, but it is high by historic comparison, reflecting our view that the NZD has some of best prospects of any of the G10 currencies."
"This is largely thanks to the attractiveness of New Zealand bond returns, widening interest rate differentials, robust commodity prices, and New Zealand’s top ranking position in the GDP growth league tables for 2013 and 2014."
"Accordingly, we expect the NZD to hold steady near 0.80 until end of Q3."
Key Quotes
"That’s a reasonable fall from current levels, but it is high by historic comparison, reflecting our view that the NZD has some of best prospects of any of the G10 currencies."
"This is largely thanks to the attractiveness of New Zealand bond returns, widening interest rate differentials, robust commodity prices, and New Zealand’s top ranking position in the GDP growth league tables for 2013 and 2014."
"Accordingly, we expect the NZD to hold steady near 0.80 until end of Q3."