23 Feb 2015
Weekly outlook for NZD crosses – BNZ
FXStreet (Barcelona) - The BNZ Research Team shares the outlook for NZD crosses, expecting USD to gain against the kiwi.
Key Quotes
“NZD/USD: Fed Chair Yellen's testimony to Congress will be the key event. We suspect she will not want to exacerbate the market's skepticism of a mid-2015 rate hike. We pick the USD to gain, overall.“
“NZD/AUD: A bout of profit-taking has NZD/AUD off its highs, but we suspect this won't last. A possible Fonterra payout affirmation (or upgrade) and so-so AU data should return it to the mid-0.96's.“
“NZD/GBP: GBP's run higher looks to have run out of steam, but we favour NZD to fall on a secular basis, too. This should leave NZD/GBP unchanged, or perhaps drifting back toward 0.48.”
“NZD/EUR: Greece has taken a four-month extension of its bailout programme, but the details need to be worked through. EUR should remain supported on this outcome, allowing the cross to fall.”
“NZD/JPY is back square in the middle of the 84 - 94 range. Unless the usual month-end data is disastrous, JPY should continue oscillating around 119, with the cross heading back to 88.”
Key Quotes
“NZD/USD: Fed Chair Yellen's testimony to Congress will be the key event. We suspect she will not want to exacerbate the market's skepticism of a mid-2015 rate hike. We pick the USD to gain, overall.“
“NZD/AUD: A bout of profit-taking has NZD/AUD off its highs, but we suspect this won't last. A possible Fonterra payout affirmation (or upgrade) and so-so AU data should return it to the mid-0.96's.“
“NZD/GBP: GBP's run higher looks to have run out of steam, but we favour NZD to fall on a secular basis, too. This should leave NZD/GBP unchanged, or perhaps drifting back toward 0.48.”
“NZD/EUR: Greece has taken a four-month extension of its bailout programme, but the details need to be worked through. EUR should remain supported on this outcome, allowing the cross to fall.”
“NZD/JPY is back square in the middle of the 84 - 94 range. Unless the usual month-end data is disastrous, JPY should continue oscillating around 119, with the cross heading back to 88.”