Forex Flash: NZD/USD projected down to 0.8065 in week ahead – Westpac
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NZD/USD
FXstreet.com (Barcelona) - Next week's calendar is busy with second-tier data radiating out of New Zealand. First, REINZ house market data is out from Monday, food prices are on Tuesday, retail sales volume and NZGB offshore holdings are on Wednesday, while Thursday contains job ads, PMI and monthly consumer confidence -however, none of these are typically market movers.
According to the Westpac Strategy Team, "The NZDUSD has been hurt by today's surprisingly weak jobs data, and may reel for much of the week ahead. There's not enough in it to sway the RBNZ into an easing bias, given the potential inflationary pressures from the Christchurch rebuild, but alternative labor market indicators will assume greater importance until the next official reading in 3 months time."
"Based on this, we project a decline towards 0.8065 is expected during the week ahead. Beyond that, NZ's economic recovery remains intact, arguing for 0.8350+." the strategy team predicts.
According to the Westpac Strategy Team, "The NZDUSD has been hurt by today's surprisingly weak jobs data, and may reel for much of the week ahead. There's not enough in it to sway the RBNZ into an easing bias, given the potential inflationary pressures from the Christchurch rebuild, but alternative labor market indicators will assume greater importance until the next official reading in 3 months time."
"Based on this, we project a decline towards 0.8065 is expected during the week ahead. Beyond that, NZ's economic recovery remains intact, arguing for 0.8350+." the strategy team predicts.
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