NZD: Vulnerable To A USD Rally; Shorts Attractive Here For 0.70 – BofA

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What is the outlook for NZD/USD?

Here is their view, courtesy of eFXdata:

Bank of America Global Research discusses NZD/USD outlook and adopts a bearish bias, and likes to express that in spot targeting a move towards 0.70.

“Quant signals now show signs for USD upside for the first time in April, after having had persistently bearish USD signals throughout this month,”BofA notes.

Models show NZD is currently the most vulnerable G10 currency with USD about to reverse higher. Moreover, event analysis is also moderately bearish NZDUSD, as front-end skew moved the most in NZDUSD last week by more than 2% for NZD put,” BofA adds.

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Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.