Sharechat Logo

NZForex Outlook: NZD slide welcomed

NZForex

Tuesday 18th November 2014

Text too small?

The NZ dollar's near 10% slide against the US dollar has been welcomed by the government, and Nick Tvedt from NZForex predicts it will remain rangebound for a while.

NZ dollar slide "welcome"
•New Zealand Finance Minister Bill English expressed some satisfaction at the weekend over the nearly 10% slide in NZD/USD in the last three months
•In his view the mid to high 0.70s are "sustainable" levels for the economy

Positive data boosts NZD
•The NZD has had a solid start to the week, rallying 0.5% this morning (Monday) to 0.7955 after stronger than expected retail sales.
•The data printed was the largest rise for Retail Sales since 2012, food and fuel were responsible for the bulk of the increases
•In terms of other influences, the G20 provided no new impetus for prices, and reports that Putin came under fire over MH17 are likely overdone

Influences this week
•Tuesday's key events include the tentatively scheduled GDT Price Index (last -0.3%)
•Wednesday then features PPI Input (0.3%)

NZD stuck in a rut?
•Despite today's rally the NZDUSD remains largely rangebound.
•The psychological 0.8000 level and 21st October’s high at 0.8034 are the next big tests on the upside
•In my view 0.7840 should provide decent support on the downside if seen
•Current spot is 0.7929.


Nick Tvedt is Senior FX Dealer at NZForex, New Zealand's leading international money transfer service and part of The OzForex Group (ASX:OFX). NZForex is a key provider of in depth commentary, forex news and insight as well as expert market analysis.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Heartland announces FY20 full year results
Geo Limited releases its FY20 Annual Report
Michael Hill International Limited announces 2020 annual report
Tower supports climate risk reporting
Tourism Holdings Limited Updated FY20 guidance
The Bankers Investment Trust Plc- Issue of Equity
Oio Consents to Acquisition of Metlifecare
Summerset Considers Retail Bond Offer
Z seeks previous corporate employees for remediation payment
SkyCity Announces Full Year Results

IRG See IRG research reports