NZD/JPY to test 80.70 level this week - Westpac

Buoyant risk sentiment globally continues to help the NZD and hurt the safe-haven yen and Imre Speizer, Research Analyst at Westpac, expects NZD/JPY to test 80.70 level this week.

Key Quotes

“This week we have trade data for May on Monday and department store sales data on Tuesday. The flash PMI is due on Friday.”

“3 months ahead: The BOJ’s defacto tapering of its asset purchases should be yen supportive. In addition, the Japanese economy is seeing a pickup in consumer activity, mitigating any slippage in external demand. The early signs are promising although more evidence is required before markets fully buy into the emerging Japanese story. We see NZD/JPY gains thus limited to the 83 area.”