Forex Flash: New Zealand strategy profile – NAB
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NZD/USD
FXstreet.com (Barcelona) - Until the NZ employment figures were released, we were starting to contemplate a NZDUSD break out of the top end of the 0.8100-0.8350 range. However, "with the risk of an RBNZ rate cut now increased the NZDUSD topside looks unlikely to be tested. Still, we doubt we're on the cusp of a substantial downward correction." comments the NAB Analyst Team.
"Our expectation of ongoing global optimism and rising NZ commodity prices means our year-end 0.8200 forecast for the NZDUSD still looks on track. Near-term, we expect dips to be limited to 0.8080." they warn however.
"There remains a lack of fundamental direction in the NZ curve at present. Unless US 10-year bond yields were to break their July lows below 1.40%, we do not see the NZ 2s-10s curve breaking below 95bps." the team predicts.
"Our expectation of ongoing global optimism and rising NZ commodity prices means our year-end 0.8200 forecast for the NZDUSD still looks on track. Near-term, we expect dips to be limited to 0.8080." they warn however.
"There remains a lack of fundamental direction in the NZ curve at present. Unless US 10-year bond yields were to break their July lows below 1.40%, we do not see the NZ 2s-10s curve breaking below 95bps." the team predicts.
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