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9 Aug 2013
Flash: NZD/USD hinges on Fed expectations – Westpac
FXstreet.com (New York) - Broad US dollar weakness has lifted NZD/USD recently, notes Sean Callow, a Global Markets Strategist at Westpac.
Key quotes
However, “the NZD/USD has been stuck inside a 0.7685-0.8105 range since late June, offering few near-term directional clues other than possible strength during the days ahead to 0.8100.”
“One plus is its resilience amid a contaminated whey crisis, suggesting NZ fundamentals provide solid backing. That means NZD crosses are more compelling than NZD/USD. The key to NZD/USD during the months ahead will be Fed tapering expectations - should they intensify, then NZD/USD will fall into the low 0.70’s.”
Key quotes
However, “the NZD/USD has been stuck inside a 0.7685-0.8105 range since late June, offering few near-term directional clues other than possible strength during the days ahead to 0.8100.”
“One plus is its resilience amid a contaminated whey crisis, suggesting NZ fundamentals provide solid backing. That means NZD crosses are more compelling than NZD/USD. The key to NZD/USD during the months ahead will be Fed tapering expectations - should they intensify, then NZD/USD will fall into the low 0.70’s.”