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12 Aug 2013
Flash: NZD/USD dive to 0.70s likely – Westpac
FXstreet.com (New York) - Global FX Strategist Sean Callow at Westpac posits the outlook of the NZD/USD moving forward.
Key quotes
“The NZD/USD is pointing higher this week – the receding Fed tapering concerns are depressing the US dollar.”
In addition, “NZ's fundamentals continue to shine, and interest rate markets are pricing in one rate hike in March and another in April. Until the US dollar starts to recover, NZD/USD is at risk of rising further towards 0.8300. A re-emergence of tapering expectations will quickly reverse the rally, though, and take it into the 0.70's.”
Key quotes
“The NZD/USD is pointing higher this week – the receding Fed tapering concerns are depressing the US dollar.”
In addition, “NZ's fundamentals continue to shine, and interest rate markets are pricing in one rate hike in March and another in April. Until the US dollar starts to recover, NZD/USD is at risk of rising further towards 0.8300. A re-emergence of tapering expectations will quickly reverse the rally, though, and take it into the 0.70's.”