FXstreet.com (Barcelona) - According to the BNZ Research Team, “While further signs of global slowdown placed downward pressure on risk appetite and the NZD during July, an expectation that policy makers will repair the damage with more stimulus limited has clearly the potential fallout effect.”
In essence, the net effect was that the NZD/USD simply tacked sideways through the month – one of the more interesting cross rates was the NZD/EUR, which notched up fresh all-time highs above 0.6600. “While the NZD/EUR may well edge a little higher, we suspect a sustained break above 0.7000 would be a bridge too far.” they add.
More generally, “the likelihood of further global policy easing, a high and rising interest rate differential, and buoyant soft-commodity prices all support our long-held forecast for the NZD to trend modestly higher into year-end. Our year-end NZD/USD forecast remains 0.8200 - against this background, we’d view any dips back towards 0.7850 as buying opportunities.” the team posits.
In essence, the net effect was that the NZD/USD simply tacked sideways through the month – one of the more interesting cross rates was the NZD/EUR, which notched up fresh all-time highs above 0.6600. “While the NZD/EUR may well edge a little higher, we suspect a sustained break above 0.7000 would be a bridge too far.” they add.
More generally, “the likelihood of further global policy easing, a high and rising interest rate differential, and buoyant soft-commodity prices all support our long-held forecast for the NZD to trend modestly higher into year-end. Our year-end NZD/USD forecast remains 0.8200 - against this background, we’d view any dips back towards 0.7850 as buying opportunities.” the team posits.
