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17 Jun 2013
Flash: NZD/USD strategy profile – Westpac
FXstreet.com (New York) - According to Global FX Strategist Sean Callow at Westpac, “The NZD/USD is poised to correct upwards to the 0.81-0.8200 area during the next week or two.”
Multi-month though, we retain our negative bias as speculative long positioning needs to be unwound further and economic data momentum should slow during the next few months.
Short end yields remain in upward trend since early May, partly driven strong NZ economic data. The 2yr targets 3.08% near-term. In terms of the NZ curve, May’s offshore-led steepening has started to run out of steam. 2-10-year swap momentum stalled after reaching 120bp. Flattening from here is likely to long-end led.
Multi-month though, we retain our negative bias as speculative long positioning needs to be unwound further and economic data momentum should slow during the next few months.
Short end yields remain in upward trend since early May, partly driven strong NZ economic data. The 2yr targets 3.08% near-term. In terms of the NZ curve, May’s offshore-led steepening has started to run out of steam. 2-10-year swap momentum stalled after reaching 120bp. Flattening from here is likely to long-end led.