NZD/USD: Well anchored around 0.67-0.70 - BNZ


According to the  NAB Research Team, the NZD/USD pair looks to be in a consolidation phase and they see it could rise on the back of a US-China trade deal. 

Key Quotes: 

“Part of NZD weakness last week reflected broad-based USD strength, with the greenback rising against all the other majors. Over the last couple of weeks US economic data have positively surprised, going against the global trend of weak data particularly in the euro area, UK and China.”

Our short-term fair value NZD estimate remains unchanged just below the 0.68 mark, with lower NZ rates offset by higher NZ commodity prices. Amidst the negative headlines out there, NZ commodity prices are showing a nice recovery, led by much stronger dairy prices. If prices stay steady here, then Fonterra’s milk payout is likely to be at the top end of its $6.00-$6.30 range, but with strong momentum in dairy prices, upside risks have emerged.”

We still see the NZD well anchored around 0.67-0.70. An uber-dovish RBNZ this week, soft Chinese data and/or strong US data could see the bottom end of that range breached, but we wouldn’t see it lasting long. We remain positive on some sort of US-China trade deal eventually prevailing, which we see as an upside risk factor to look forward to. And, on balance, we can’t see the RBNZ meeting the dovish market expectations this week.”

“The NZD looks to be in a consolidation phase. The next resistance level is 0.6970, but the mid-2018 high of 0.7060 might be a tougher level to crack. Initial support area is 0.67.”

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

Latest Forex News

Editors’ Picks

EUR/USD rebounds after dismal US PMIs

EUR/USD is trading closer to 1.0850, rising in response to weak US PMIs, with the services one pointing to contraction. Earlier, German Manufacturing PMI beat estimates. 

EUR/USD News

GBP/USD advances to 1.2950 after US data

GBP/USD is trading around 1.2950, taking advantage of US weakness stemming from a downfall in Markit's Services PMI in the US. In Britain, the Manufacturing PMI exceeded estimates. 

GBP/USD News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Consolidation process underway

The Crypto board continues to be immersed in an emotional leg-breaking, consistently punishing the emotional state of the traders with its continuous changes of direction.

Read more

XAU/USD unstoppable, breaks to fresh 2020 highs, approaching $1650/oz

XAU/USD is trading in an uptrend above its main daily simple moving averages (SMAs) while breaking above a bull channel. Gold is printing fresh 2020 highs hitting $1646.64 per ounce on an intraday basis.  

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex MAJORS

Cryptocurrencies

Signatures