Forex Flash: RBNZ rate cut unlikely; year-end NZD/USD target 0.8200 - BNZ
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NZD/USD
FXstreet.com (San Francisco) - Prospects of an RBNZ rate cut are now considered less likely after improving prospects for the global economy and on lackluster NZ indicators, which should preserve consolidative price action for NZDUSD, says Mike Jones, Currency Strategist at BNZ in a research note.
"Looking ahead, with the risk of an RBNZ interest rate cut now very real, the NZDUSD topside looks unlikely to be tested," comments Mr. Jones. "Still, we doubt we're on the cusp of a substantial downward correction. Our expectation of ongoing global optimism and rising NZ commodity prices means our year-end 0.8200 forecast for the NZDUSD still looks about right. Near-term, we expect dips will be limited to 0.8080."
NZDUSD is trading near its session high, last at 0.8160.
"Looking ahead, with the risk of an RBNZ interest rate cut now very real, the NZDUSD topside looks unlikely to be tested," comments Mr. Jones. "Still, we doubt we're on the cusp of a substantial downward correction. Our expectation of ongoing global optimism and rising NZ commodity prices means our year-end 0.8200 forecast for the NZDUSD still looks about right. Near-term, we expect dips will be limited to 0.8080."
NZDUSD is trading near its session high, last at 0.8160.
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