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26 Aug 2013
Flash: NZD/USD to test bottom of a 2-month range - Westpac
FXstreet.com (Barcelona) - After being the worst performing G10 currency last week, the Kiwi is expected to test the bottom of a two-month range this week, according to Imre Speizer, FX Strategist at Westpac.
Key Quotes
"The NZD continues to consolidate its large May/June decline, stuck inside a 0.7685-0.8135 range. Near term, however, the currency looks weak and should test the bottom of this range during the week ahead. The main reason for this is likely to be continuing market expectations the Fed will start tapering QE in September."
"There’s also the RBNZ’s newly announced macro-prudential restrictions which could temporarily curb the housing market and credit growth during the next few months."
"If tapering is announced in September and is significant in magnitude, NZD/USD will probably break below 0.7685 towards the low 0.70’s. Alternatively, if the Fed disappoints the taperists, then the NZD/USD will rebound to the 0.8400-0.8500 area."
Key Quotes
"The NZD continues to consolidate its large May/June decline, stuck inside a 0.7685-0.8135 range. Near term, however, the currency looks weak and should test the bottom of this range during the week ahead. The main reason for this is likely to be continuing market expectations the Fed will start tapering QE in September."
"There’s also the RBNZ’s newly announced macro-prudential restrictions which could temporarily curb the housing market and credit growth during the next few months."
"If tapering is announced in September and is significant in magnitude, NZD/USD will probably break below 0.7685 towards the low 0.70’s. Alternatively, if the Fed disappoints the taperists, then the NZD/USD will rebound to the 0.8400-0.8500 area."