For NZD traders - next week's big events a risk for higher

Author: Eamonn Sheridan | Category: News

Some in brief comments from Westpac on the New Zealand dollar 

FOMC and NZ GDP data just 5 hours apart
  • US dollar a main driver of NZ/US exchange rate recently, risk is for a USD decline if the FOMC 'encourages market doves'
  • Add in that the NZ GDP 'should show a continuation of NZ's economic slowdown …  but also not be as weak as the RBNZ has forecast' - might see pricing for a  rate cut in August fall
Further out, outlook is for lower NZD:
  • NZD/USD's main negative factor will continue to be US trade tensions which have broadened beyond China.
  • Multi-month, we expect the story of US growth outperformance to persist, lifting the US dollar further, and in turn, pushing NZD/USD towards 0.6400 over the next quarter

ForexLive
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose