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30 Jul 2014
NZD/USD potential for further downside – Westpac
FXStreet (Edinburgh) - Analysts at Westpac Global Strategy Group expect the pair to intensify its decline in the near term.
Key Quotes
“NZD/USD momentum is now clearly negative”.
“Recent economic data has been disappointing, and the RBNZ has agreed, saying there’s now less need to tighten further this year”.
“More importantly for the currency, though, the RBNZ also sounded a warning it may intervene and sell the NZD”.
“This is likely to deter speculators from buying, and when combined with the US dollar’s recent upward trend, argues for more downside in NZD/USD. We target the 0.8500 area during the week ahead”.
Key Quotes
“NZD/USD momentum is now clearly negative”.
“Recent economic data has been disappointing, and the RBNZ has agreed, saying there’s now less need to tighten further this year”.
“More importantly for the currency, though, the RBNZ also sounded a warning it may intervene and sell the NZD”.
“This is likely to deter speculators from buying, and when combined with the US dollar’s recent upward trend, argues for more downside in NZD/USD. We target the 0.8500 area during the week ahead”.