NZD/USD: Sell at 0.6850 - Westpac
Imre Speizer, head of NZ strategy at Westpac is recommending to go short on NZD/USD pair at 0.6850 levels.
Key Quotes
“Rationale: The RBNZ’s dovish shift earlier this week was a major surprise for markets and forecasters. Fundamental developments didn’t necessarily warrant such an abrupt shift, but concerns the NZD could rise further appeared to be a major decision factor. The RBNZ has signaled its aversion to currency strength, and we expect that to remain a key element of its dovish stance going forward.
The US dollar has priced in not only a lengthy Fed pause but also a rate cut within a year. A positive US economic data pulse may be clearer once we see Q2 numbers, and that may pare Fed pricing, supporting the US dollar.
NZD/USD fell sharply from 0.6925 in response to the RBNZ surprise, and we are loathe to chasing, it but prefer selling into a (50%) corrective bounce.”
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.
