NZD/JPY: Scope for risk to be sustained towards the 82.50 area - Westpac
|Global risk sentiment remains elevated, supporting the NZD and hurting the safe-haven yen and there is scope for the risk to be sustained towards the 82.50 area for NZD/JPY cross, according to Imre Speizer, Analyst at Westpac.
Key Quotes
“The end of the month is nigh, and with it what is likely to be a more pronounced weakening in the inflation pulse in Japan. Thus CPI will likely dominate next week’s event risk in Japan though we do also have retail sales on Thursday and jobs data plus IP next Friday.”
“3 months ahead: The BOJ’s defacto tapering of its asset purchases should be yen supportive. In addition, the Japanese economy is seeing a pickup in consumer activity, mitigating any slippage in external demand. The early signs are promising although more evidence is required before markets fully buy into the emerging Japanese story. We see NZD/JPY gains thus limited to the 83 area.”
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