NZD/JPY to target a further slippage to around 75.70 - Westpac
|Imre Speizer, Research Analyst at Westpac, suggests that the risk averse tone in some markets resulting from US political developments has boosted the yen and they target a further slippage in NZD/JPY this week, to around 75.70.
Key Quotes
“It’s hard to see markets stepping back from this more risk averse stance any time soon given that the US investigations could take some time to complete.”
“It’s a reasonable data week in Japan this week with April trade data on Monday, PMI on Wednesday and CPI next Friday. The impact of recent ¥ strength plus softening energy/ commodity prices suggests the inflation pulse is set to roll over again.”
“3 months ahead: The BOJ’s defacto tapering of its asset purchases should continue to support the yen. In addition, bouts of Trumpdisappointment will weigh on risk sentiment and boost the safe-haven yen. We see NZD/JPY remaining below 79 over the next few months.”
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