9 Oct 2014
NZD/USD back to neutral outlook – Westpac
FXStreet (Edinburgh) - Robert Rennie, FX Strategist at Westpac, reviewed the now neutral stance on the Kiwi.
Key Quotes
“We have switched back to a neutral bias for the week ahead”.
“NZD/USD experienced a stunning 13% fall in September and was technically extremely oversold”.
“A correction could extend to 0.8000 and possibly beyond. However, the RBNZ issued a formal ‘verbal’ intervention statement with NZD around the 0.8070 level. So it would require significant US$ weakness for us to challenge that sort of level”.
“Milk prices will be important this week, especially if we see any signs of demand now that China has returned from the National Day holidays”.
“Key resistance levels 0.8070 and then 0.8140 which is 38.2% of the 0.8836 to 0.7709 July/ Sep down-move”.
Key Quotes
“We have switched back to a neutral bias for the week ahead”.
“NZD/USD experienced a stunning 13% fall in September and was technically extremely oversold”.
“A correction could extend to 0.8000 and possibly beyond. However, the RBNZ issued a formal ‘verbal’ intervention statement with NZD around the 0.8070 level. So it would require significant US$ weakness for us to challenge that sort of level”.
“Milk prices will be important this week, especially if we see any signs of demand now that China has returned from the National Day holidays”.
“Key resistance levels 0.8070 and then 0.8140 which is 38.2% of the 0.8836 to 0.7709 July/ Sep down-move”.