Forex Flash: NZD/USD should edge higher before eventual stumble – Westpac

FXstreet.com (Barcelona) - Investors of the kiwi look ahead to next week where the NZ event calendar is much busier than the week in progress. This should offer a refreshing change of pace for the kiwi during a week that was seemingly dominated by ECB speculative movements.

On Tuesday, quarterly business opinion survey has the potential to move the pair and according to Sean Callow, a Strategy Analyst at Westpac, "the quarterly version is a better predictor of activity than is the monthly, so any significant declines in its components could cause some NZD selling." Sticking with Tuesday, electronic spending and house prices measures in NZ will also be reported, while Manufacturing PMI, food prices and monthly consumer confidence (Thu) and house sales will complete the week.

"The recent rally since 29 June appears complete, arguing for a pullback within the next day or two to 0.7950. Ultimately, a final push just above 0.8065 remains possible during the week ahead and we're inclined to wait for that before initiating bearish trades. Any ECB and BOE stimulus tonight will be slightly NZD-positive." Callow writes.