NZD/USD: Break Below Four-Month Old Ascending Channel - Westpac
13 May 2016, 07:23
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NZD/USD: Break Below Four-Month Old Ascending Channel - Westpac
Imre Speizer, Research Analyst at Westpac, notes that the NZD/USD has
broken below a four-month old ascending channel such that momentum is
now pointing downwards, mainly due to the US dollar’s rebound since 3
May.
Key Quotes
“Looking at the week ahead, the RBNZ inflation expectations survey will
be important given a June RBNZ cut has scope to be priced further than
the current 65%. Against that, the RBNZ has disappointed expectations of
imminent macro-prudential tightening, causing some NZD short positions
to exit. A 0.67-0.69 range is expected, but looking three months out, we
target 0.65 based on the RBNZ’s easing combined with Fed’s tightening
biases.”
