Back
21 Aug 2015
NZD/USD keeps recovering but targets lowered
FXStreet (Guatemala) - NZD/USD is currently trading at 0.6629 with a high of 0.6638 and a low of 0.6622.
NZD/USD is riding the weakness in the greenback as markets continue to unwind long positions post the FOMC minutes yesterday that offered a doves picture in respect to timings of a rate hike.
Markets are starting to discount a Fed hike as soon as September and that is aiding the bird in its recovery from the multi-year lows. However, the bird can only fly so high in the current environment where markets are anticipation of another rate cut from the R before the year is out.
Lowering NZD/USD targets on RBNZ
Analysts at TD Securities explained that the RBNZ easing bias from April and 50bp of cuts in June/July has placed considerable downward pressure on the NZD (and TWI) so they again lowered their NZD targets. "However, net short positions remain quite stretched and a cash rate of 2.75% is priced in, so we do not see material downside from here in the near-term. We target $US0.65 by year end, and $US0.59 by end-2016."
NZD/USD is riding the weakness in the greenback as markets continue to unwind long positions post the FOMC minutes yesterday that offered a doves picture in respect to timings of a rate hike.
Markets are starting to discount a Fed hike as soon as September and that is aiding the bird in its recovery from the multi-year lows. However, the bird can only fly so high in the current environment where markets are anticipation of another rate cut from the R before the year is out.
Lowering NZD/USD targets on RBNZ
Analysts at TD Securities explained that the RBNZ easing bias from April and 50bp of cuts in June/July has placed considerable downward pressure on the NZD (and TWI) so they again lowered their NZD targets. "However, net short positions remain quite stretched and a cash rate of 2.75% is priced in, so we do not see material downside from here in the near-term. We target $US0.65 by year end, and $US0.59 by end-2016."