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14 Jun 2013
Flash: NZ fundamentals to underpin NZD/USD - BNZ
FXstreet.com (Barcelona) - NZD/USD should find renewed buyign interest in coming months that keeps the rate well buoyed as to complete a projected target for the end of the year at 0.8300, says Kymberly Martin, Strategist at BNZ.
Martin notes: "Our key premise that the NZD remains well supported by domestic fundamentals has not changed. However, as the market has inched forward its expectations for the tapering of US QE, demand for the ‘risk sensitive’ NZD has been reduced. In addition, the prospect of greater currency volatility reduces the appeal of ‘carry trade’ currencies such as the NZD."
Martin notes: "Our key premise that the NZD remains well supported by domestic fundamentals has not changed. However, as the market has inched forward its expectations for the tapering of US QE, demand for the ‘risk sensitive’ NZD has been reduced. In addition, the prospect of greater currency volatility reduces the appeal of ‘carry trade’ currencies such as the NZD."