NZD/USD Boosted by US Dollar Weakness – Westpac

NZD/USD Boosted by US Dollar Weakness – Westpac

5 April 2016, 08:20
Roberto Jacobs
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NZD/USD Boosted by US Dollar Weakness – Westpac

Imre Speizer, Research Analyst at Westpac, notes that the NZD/USD broke above its six-month old trading range recently, following a dovish speech by Fed Chair Yellen.

Key Quotes

The break above 0.6900 technically signals a move to at least 0.7200 during the next few weeks, a period which contains little scheduled major NZ news (dairy auctions and business
confidence the notable exceptions).

That should allow global events to dominate NZD/USD, in particular those which influence the US dollar. Much of the strength in NZD/USD since January can be explained by the weakness in the USD over that period.

The traditional short term drivers, such as NZ-US interest rate spreads and commodity prices have in contrast been pointing downwards this year.”

(Market News Provided by FXstreet)

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