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