NZD/USD driven by NZ politics - Westpac

Sandeep Kanihama FXStreet Contributor

NZD/USD continues to grind lower, driven partly by NZ politics and partly by a resurgent US dollar, targeting 0.6820 next, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Regarding the former, NZD/USD has fallen by 4.4 cents since mid-August when the first surprise polls were released showing Labour was in with a chance. According to our fair value model, the US dollar, interest rates, commodities and risk appetite have accounted for only 0.5 cents of that fall. The strong suspicion is that NZ politics (polls, election, government formation, policy announcements) accounted for the rest.”

“Further ahead, we expect that NZD/USD will fall below 0.68 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.

EUR/USD turns negative near 1.1850

EUR/USD has given up its earlier intraday gains on Thursday and is now struggling to hold above the 1.1850 area. The US Dollar is finding renewed support from a pick-up in risk aversion, while fresh market chatter suggesting Russia could be considering a return to the US Dollar system is also lending the Greenback an extra boost.

GBP/USD change course, nears 1.3600

GBP/USD gives away its daily gains and recedes toward the low-1.3600s on Thursday. Indeed, Cable now struggles to regain some upside traction on the back of the sudden bout of buying interest in the Greenback. In the meantime, investors continue to assess a string of underwhelming UK data releases released earlier in the day.