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7 Oct 2013
Flash: NZD/USD outlook neutral this week - Westpac
FXstreet.com (Barcelona) - According to Imre Speizer, FX Strategist at Westpac, this week there will be opposing forces to influence the NZ Dollar, with robust NZ fundamentals faced with the fluid political crisis.
Key Quotes
"The US Government remains in partial shutdown mode, and there is now a chance (admittedly low at this stage) of a US debt default. While these factors are hurting the US dollar, they are also causing risk appetite to weaken, in turn dampening the NZD."
"Any pullback should be contained by 0.8200, though, and above 0.8350 would signal a resumption of the uptrend to beyond 0.8430."
Longer term, if US fiscal agreements are reached, then multi-month US dollar weakness due to a continuation of Fed money printing until 2014 should support NZD/USD."
"Combined with stronger NZ fundamnetals and RBNZ tightening from early 2014, we see a good chance of NZD/USD exceeding 0.8600 by year end."
Key Quotes
"The US Government remains in partial shutdown mode, and there is now a chance (admittedly low at this stage) of a US debt default. While these factors are hurting the US dollar, they are also causing risk appetite to weaken, in turn dampening the NZD."
"Any pullback should be contained by 0.8200, though, and above 0.8350 would signal a resumption of the uptrend to beyond 0.8430."
Longer term, if US fiscal agreements are reached, then multi-month US dollar weakness due to a continuation of Fed money printing until 2014 should support NZD/USD."
"Combined with stronger NZ fundamnetals and RBNZ tightening from early 2014, we see a good chance of NZD/USD exceeding 0.8600 by year end."