23 Jul 2015
NZD/USD still seen at 0.62 by year-end – Westpac
FXStreet (Edinburgh) - Imre Speizer, Strategist at Westpac, suggested the pair could grind lower towards the 0.62 handle by end of 2015.
Key Quotes
“We maintain our negative multi-month outlook for NZD/USD, but are less bearish in the near term”.
“A bounce to 0.6700 is possible during the week ahead, following the RBNZ’s hawkish surprise to markets today”.
“Speculative positioning is short NZD at records levels, according to the CFTC, and risks rebalancing, catalysed by the RBNZ’s lack of urgency implied by its guidance paragraph today”.
“The RBNZ also surprised the market by watering down its currency warning”.
“Beyond such a positioning cleanout though, we expect NZ fundamentals to require an easing cycle taking the OCR to 2.0%. We target 0.6200 by year end”.
Key Quotes
“We maintain our negative multi-month outlook for NZD/USD, but are less bearish in the near term”.
“A bounce to 0.6700 is possible during the week ahead, following the RBNZ’s hawkish surprise to markets today”.
“Speculative positioning is short NZD at records levels, according to the CFTC, and risks rebalancing, catalysed by the RBNZ’s lack of urgency implied by its guidance paragraph today”.
“The RBNZ also surprised the market by watering down its currency warning”.
“Beyond such a positioning cleanout though, we expect NZ fundamentals to require an easing cycle taking the OCR to 2.0%. We target 0.6200 by year end”.