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29 Mar 2013
Forex Flash: NZD/USD strategy profile – Westpac
FXstreet.com (Barcelona) - Next week’s economic calendar for the NZD has little to no market moving releases. An employment confidence report and the monthly commodity index are both out on Tuesday but will be ignored by the market. More important will be the GlobalDairyTrade auction, also on Tuesday, which could see milk powder prices make fresh record highs on supply (drought) concerns.
According to Sean Callow, a Global FX Strategist at Westpac, “The NZD/USD is flirting with re-entry into the uptrend which has prevailed since May 2012. Global concerns are weighing for sure, but the domestic newsflow has been compelling (economic growth and commodity prices).“
Moreover, we sense a pickup in flow from offshore investors in NZGB’s as Eurozone concerns mount. “We like the NZD against EUR, GBP and AUD, but NZD/USD is a harder call near-term.” he adds.
According to Sean Callow, a Global FX Strategist at Westpac, “The NZD/USD is flirting with re-entry into the uptrend which has prevailed since May 2012. Global concerns are weighing for sure, but the domestic newsflow has been compelling (economic growth and commodity prices).“
Moreover, we sense a pickup in flow from offshore investors in NZGB’s as Eurozone concerns mount. “We like the NZD against EUR, GBP and AUD, but NZD/USD is a harder call near-term.” he adds.