Forex Flash: NZD/USD could sell-off towards 0.7550 – Westpac

FXstreet.com (Barcelona) - According to the Westpac Analyst Team, "A lengthier China growth trough plus the Eurozone crisis are keeping NZDUSD on the back foot, as the 0.7800 level is now in sight - that is our minimum downside target but this sell-off could extend towards 0.7550. Technically, the NZ economic momentum, short term valuation, and speculative positioning all contribute to the argument for lower."

Moreover, "NZ Yield momentum remains negative and we target 2.52% in the 2yr. There's nothing scheduled locally to move rates, but an ECB disappointment on Thursday would bring our target into sight. Similarly for any Australian GDP and employment growth disappointments this week."