NZD/USD: Positive vaccine hopes is supportive of the NZD from a cyclical growth perspective [Video]

Giles Coghlan LLB, Lth, MA Financial Source

Listen to the latest market mood for the NZD/USD pair.

Strong NZD, Weak USD

At the last Reserve Bank of New Zealand meeting the NZD was sent shooting higher as the RBNZ said that they would need 100bps less stimulus in the coming weeks. The economy and the global situation was less severe than the last time they met and this provided for a boost for the NZD and NZ10 Y bonds.

Th medium term outlook for the USD remains weak and positive vaccine hopes is also supportive of the NZD from a cyclical growth perspective.

Therefore, expect NZDUSD buyers from deeper pullbacks.

Trade Risks: The main risk to this trade is if there is a sharp risk off tone which boosts the USD higher, weakens NZD, and that will invalidate this outlook.

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Author

Giles Coghlan LLB, Lth, MA

Financial Source

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

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