Home NZD/USD Looks To Be Sold Off Too Much; What’s Next? – CIBC
Minors, NZD/USD Forecast

NZD/USD Looks To Be Sold Off Too Much; What’s Next? – CIBC

The New Zealand dollar suffered during the latter part of the year due to political fear, especially as Jacinda Ardern was sworn in. But has it gone too far?

Here is their view, courtesy of eFXnews:

CIBC FX Strategy Research discusses NZD outlook, noticing that the  post NZ election period has seen investors aggressively re-position their NZD bets.

“From a record long skew at the end of July, positions have unwound to such an extent that new shorts are nearing mid-2015 extremes. So it’s not surprising that over the same period the currency has been by far the worst performing major against the USD.

The question now is whether the market has become too bearish  on the decision by NZ First leader Winston Peters to throw his support behind untried Labour PM Jacinda Ardern. While inward migration is set to decelerate from recent extremes, the central bank has lifted its inflation forecasts, suggesting that  policymakers have become marginally more hawkish and implying NZD is trading too weak,” CIBC argues.

CIBC targets NZD/USD around 0.70-0.72 through 2018.

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.