News coming out of New Zealand has been mixed lately, with falling milk prices but some upbeat inflation figures.
What’s next? Citi recommends buying NZD/USD:
Here is their view, courtesy of eFXnews:
Currency investors should consider buying NZD/USD this week, advises CitiFX in its weekly FX pick to clients.
“In a holiday thinned week approaching US Thanksgiving, there may be little to interrupt the risk-on trend from last week. Most significantly, market expectations for a dovish Fed hike are likely to be increasingly cemented.
NZDUSD should be among the beneficiaries of this phenomenon…
Selling momentum on NZD from the leveraged sector is beginning to wane. While the leveraged sector has not always set the tone for trade on NZD, potential for reversal of overextended shorts makes risk-return more attractive,” Citi says as a rationale behind this call.
In line with this view, Citi recommends buying NZD/USD from 0.6530, with a target at 0.67, and a stop at 0.6450
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