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

Sandeep Kanihama FXStreet Contributor

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.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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