The kiwi dollar is overlooked by many. Nevertheless, in some days this pair makes bigger moves than many of its counterparts. After the recent gains, what’s next?
Here is their view, courtesy of eFXnews:
NZD: Bullish Tech Signal Intact; Levels & Targets – NAB
NAB FX Technical Strategy Research still holding a bullish NZD/USD bias since shifting from definitively bearish to bullish in the past three to four weeks.
“The 7.5% decline from the February high now looks to be complete after bullish weekly and monthly closes in May. Fresh positive MT momentum bias helps to confirm the shift in directional bias
We target a further upswing to 0.7340/60 in the coming weeks.
Only a weekly close below 0.7046 would negate the uptrend bias,” NAB projects.
NZD/USD is trading circa 0.7215 as of writing.
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NZD: Outperformance Ahead: 4 Reasons To Stay Bullish- BTMU
BTMU FX Strategy Research holds a bullish view view on NZD into year-end on the ground on the following 4 reasons:
1- “The RBNZ places importance on its own Survey of Expectations which was released in May for Q2 and revealed a jump in 1-year inflation expectations from 1.56% to 1.92% and 2-year inflation expectations from 1.92% to 2.17%, the highest level since Q3 2014.
2- Speculative positioning in NZD has undergone a rapid change from a record long position to a short position, which may well now be prone to being reversed again.
3- Option flows also show a turn toward more positive NZD sentiment.
4- Continued positive global growth may well prompt a shift in message from the RBNZ later this year given the greater prospect of a more sustained pick-up in inflation,” BTMU argues.
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