Forex Flash: NZD/USD should see gradual appreciation into year-end - NAB

FXstreet.com (Barcelona) - While there is risk of global growth slowing down under the weight of a Chinese hard landing and/or contagion effects from Europe with such scenario rapidly undermining commodity prices and risk appetite, the NAB Research Team maintains "an elevated forecasts for the NZDUSD around 0.8000, with gradual appreciation into year end."

"Turning to the domestic backdrop, NZ undamentals remain supportive of the NZD. Even after Q1's stellar GDP result, leading indicators for Q2 have been encouraging. What's more, Canterbury reconstructive activity should begin to kick in from
Q3/Q4. All of this leaves us broadly happy with the 3% growth we are forecasting for NZ this year" NAB adds.