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5 Aug 2013
Flash: NZD/USD targets 2013 low at 0.7684 - Westpac
FXstreet.com (Barcelona) - NZD/USD momentum has reversed, pointing to a test of the 2013 low of 0.7684 this week, partly due to the Fonterra dairy product recall, notes Imre Speizer, Strategist at Westpac.
Key Quotes
"Fed tapering fears have receded with the slightly dovish FOMC statement and weaker July payrolls, but NZD/USD has not benefitted. That may be partly due to the Fonterra dairy product recall, but NZD/USD started weakening last week even before the news broke, suggesting other factors at play."
"For that reason, combined with the RBNZ’s tightening bias, we adopt only a cautious bearish stance towards NZD/USD, and require a break below 0.7685 to confirm to us that the NZD is indeed resuming its multi-month slide towards 0.7200."
Key Quotes
"Fed tapering fears have receded with the slightly dovish FOMC statement and weaker July payrolls, but NZD/USD has not benefitted. That may be partly due to the Fonterra dairy product recall, but NZD/USD started weakening last week even before the news broke, suggesting other factors at play."
"For that reason, combined with the RBNZ’s tightening bias, we adopt only a cautious bearish stance towards NZD/USD, and require a break below 0.7685 to confirm to us that the NZD is indeed resuming its multi-month slide towards 0.7200."