Forex Flash: NZD/USD could dip to 0.8375 on dovish RBNZ – Westpac

FXstreet.com (Barcelona) - There's event risk aplenty in NZ next week - most importantly will be the RBNZ meeting (Thursday), which will deliver(a one page statement (no forecasts), which could be slightly more dovish in tone than December's given soft inflation readings and a firmer NZD exchange rate. Furthermore, Governor Wheeler also speaks in Christchurch the following day. Other events pose minor market risks: trade balance (Tuesday), building permits (Wednesday), and migration (Friday).

According to Global Markets Strategist Sean Callow at Westpac, "The multi-month outlook for NZDUSD outlook remains positive, and any dip inspired by a dovish RBNZ on Thursday should represent a buying opportunity. Such a dip could reach 0.8375, but should be followed by fresh rally above 0.8440 toward 0.8475. However, beyond that there's 0.8570 to target."