Forex Flash: NZD/USD vulnerable to the downside - BNZ

FXstreet.com (Barcelona) - There are a lot of conflicting influences to weigh up in the NZDUSD going forward, says Mike Jones, Currency Strategist at Bank of New Zealand. "Overall, we're left with the impression that NZD vols stand a good chance of rising in September (off a low level), and that there is more good news than bad priced into markets at present." This being the case, Mr. Jones sees "the market is perhaps at risk of disappointment, and the 'growth sensitive' NZDUSD vulnerable to the downside."
Nonetheless, Mike adds: "given still supportive domestic fundamentals, we still think a 'buy on dips' strategy remains appropriate for the NZDUSD. A re-test of the July 0.7840/50 lows would present one such buying opportunity."