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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Focus on US GDP, US dollar vulnerable to sell the fact trade

EUR/USD may see a corrective bounce if the preliminary first-quarter US GDP reading matches or fails to beat expectations by a big margin. The upbeat US retail sales data released a week ago pointed to a stronger economy in the first three months than previously expected.

EUR/USD News

GBP/USD re-takes 1.2900 amid Brexit pessimism, US GDP eyed

GBP/USD revisits 1.2900 mark while heading into the London open on Friday as investors rushed to take their greenback profits off ahead of US GDP whereas the absence of major Brexit negative news off-late also favors the pullback.

GBP/USD News

USD/JPY off-highs, but stays above 200-day MA

USD/JPY is enjoying good two-way price movements, with the upside capped by the risk-off trades in the Asian equities and Yen flows ahead of the 10-day holiday while the downside remains cushioned by mixed Japanese macro data and renewed optimism over the US-China trade deal. 

USD/JPY News

US First Quarter GDP Preview: Reasons to be cheerful

In an economy that is about 70% fueled by household spending as is the US the attitudes and outlook of the consumer are paramount. Business investment is an important if ...

Read more

Gold again aims for $1280 break as traders remain cautious

Gold is on the bids around $1278 during early Friday. Monetary policy statements from the global central banks have turned the risk tone heavier off-late while the US GDP is on the spotlight for fresh clues.

Gold News

Majors

Cryptocurrencies

Signatures