NZD: Composition of government to cause a kneejerk response - Westpac

The announcement of the government composition (probably during the next day or two) will probably cause a kneejerk response in the NZD - up for National, down for Labour – after which the direction of the US dollar will dominate, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Should the US dollar consolidate further next week, then NZD/USD could rise as far as 0.7200.”

“Further ahead, we remain of the view that NZD/USD will fall below 0.7000 by year end, driven by a continuing decline in NZ-US interest rate spreads.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.