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2 Mar 2015
NZD/USD: 0.7120 is next major target
FXStreet (Guatemala) - NZD/USD is currently trading at 0.7507 with a high of 0.7564 and a low of 0.7506.
NZD/USD is losing the battle again to the greenback, despite some shoddy display in the US manufacturing sector as displayed today by the ISM results. The bird is making fresh lows at the start of the month and a break of the handle and then the 0.7480 support would likely open up room for further downside towards 0.7440 as a key milestone for the month of February.
Meanwhile, on a long projection, Imre Speizer, analyst at Westpac Banking Corporation explained that, over the medium term, there remains potential for NZD/USD to fall further. "The next major target is 0.7120, but as long as the US dollar’s uptrend remains intact, even lower is possible. The catalysts for this will be two-fold: first, NZ data will hit a soft patch around mid-year (CPI for Q1, which prints in April, will probably be near zero)."
Imre extended his analyses for the same time frame and added, "Second, we expect the US dollar to resume its uptrend later this month given ECB QE starts soon and the FOMC may officially drop its on-hold language “patient”, meaning the June meeting would be live."
NZD/USD is losing the battle again to the greenback, despite some shoddy display in the US manufacturing sector as displayed today by the ISM results. The bird is making fresh lows at the start of the month and a break of the handle and then the 0.7480 support would likely open up room for further downside towards 0.7440 as a key milestone for the month of February.
Meanwhile, on a long projection, Imre Speizer, analyst at Westpac Banking Corporation explained that, over the medium term, there remains potential for NZD/USD to fall further. "The next major target is 0.7120, but as long as the US dollar’s uptrend remains intact, even lower is possible. The catalysts for this will be two-fold: first, NZ data will hit a soft patch around mid-year (CPI for Q1, which prints in April, will probably be near zero)."
Imre extended his analyses for the same time frame and added, "Second, we expect the US dollar to resume its uptrend later this month given ECB QE starts soon and the FOMC may officially drop its on-hold language “patient”, meaning the June meeting would be live."