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6 Feb 2015
NZD/USD might reach 0.75-0.76 near-term - Westpac
FXStreet (Barcelona) - Imre Speizer of Westpac, believes that NZD/USD might reach 0.75-0.76 levels in the next few days as positions are rebalanced, but the larger trend still favours a slide towards 0.71.
Key Quotes
“The RBNZ’s monetary policy stance was [..] clarified by a speech from Governor Wheeler. The main message for markets was that rate cuts are not currently being contemplated. That clarification caused speculative shorts to exit, with a similarly large response from swap rates."
“Also supportive were whole milk powder prices which have had a decent bounce, up $645 to $2875 since December. That’s still a long way from the $5,000 peak, but with production falling in drought affected NZ further price rises are plausible.”
“NZD/USD could reach the 0.75-0.76 area during the next few days as positions are rebalanced further.”
“Beyond that, we expect the strong US dollar to dominate and push NZD/USD towards 0.71.”
Key Quotes
“The RBNZ’s monetary policy stance was [..] clarified by a speech from Governor Wheeler. The main message for markets was that rate cuts are not currently being contemplated. That clarification caused speculative shorts to exit, with a similarly large response from swap rates."
“Also supportive were whole milk powder prices which have had a decent bounce, up $645 to $2875 since December. That’s still a long way from the $5,000 peak, but with production falling in drought affected NZ further price rises are plausible.”
“NZD/USD could reach the 0.75-0.76 area during the next few days as positions are rebalanced further.”
“Beyond that, we expect the strong US dollar to dominate and push NZD/USD towards 0.71.”