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1 Aug 2013
Flash: NZD/USD could fall to low 0.7000s on Fed tapering – Westpac
FXstreet.com (New York) - Next week’s calendar is busy with important labor market data. The stats department has tweaked its schedule to release all the surveys on the same day - Wednesday. Markets will focus on the unemployment rate, which risks a small bounce from Q1’s surprisingly low 6.2% although preserving the trend of improvement. Also out are commodity prices (Mon), QV house prices (Thu), and electronic spending (Fri), notes Sean Callow, a Global FX Strategist at Westpac.
Key quotes
“The NZD should continue to outperform most of the majors apart from the USD. Evidence of strengthening fundamentals continues to mount - higher milk prices, increased construction activity, and a hot housing market - and the RBNZ has explicitly shifted to a tightening stance.”
“The NZD/USD, though, is unclear near-term, with Fed tapering expectations dominating. Our multi-month view it could fall to the low 0.70’s assumes tapering starts in 2013.”
Key quotes
“The NZD should continue to outperform most of the majors apart from the USD. Evidence of strengthening fundamentals continues to mount - higher milk prices, increased construction activity, and a hot housing market - and the RBNZ has explicitly shifted to a tightening stance.”
“The NZD/USD, though, is unclear near-term, with Fed tapering expectations dominating. Our multi-month view it could fall to the low 0.70’s assumes tapering starts in 2013.”