NZD/USD: Opportunities to re-enter long positions at around 0.60 – ANZ


Some weakness will bring opportunities to reset long trades in the NZD/USD pair at 0.60 while economists ANZ Bank has updated kiwi’s forecast to 0.65 for the rest of the year.

Key quotes

“Despite having re-opened the domestic economy, beyond an initial bounce-back, the New Zealand economy remains vulnerable to a weak global demand and no international tourism. Although the hole in GDP is likely behind us, the full economic impact of the recession will become clear over the rest of 2020.” 

“The NZDs outperformance alongside other risk currencies has been tempered by a dovish central bank. We think this dovishness will linger, as the RBNZ eventually increases its large-scale asset purchases and toys with unconventional policy measures such as negative rates and the purchase of foreign bonds.” 

“Against the JPY and the USD we expect consolidation and tactical retracement to offer opportunity for entry given the improved global backdrop.”

“To reflect a more balanced outlook, we have lifted our NZD/USD forecast to 0.65 for the remainder of 2020, recognising the role of liquidity and fiscal support in limiting downside to the global story.”

 

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 assets. 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 Open Markets 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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.

EUR/USD News

GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.

GBP/USD News

XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI once again breaks $40 per barrel after trading lower in early EU trade

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday's session, the price has taken the USD 40 per barrel handle. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures