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

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