The kiwi dollar had a rollercoaster period following the elections. Jacinda Ardern’s ascent to leading the country was accompanied by a big fall in the currency, especially due to the plans to change the RBNZ’s mandate. What’s next? Here are two opinions.
Here is their view, courtesy of eFXnews:
NZD/USD: Relatively Calm After A Busy Political Month; What’s Next? – ING
ING FX Strategy Research discusses NZD outlook noting that after an eventful month, this week provides some relative calm for NZD with only second-tier manufacturing PMI and 3Q PPI inflation data to note (both Fri NZ local time).
“The external environment should remain fairly conducive in the near-term, especially if waning tax reform sentiment continues to weigh on the USD. We see greater risks for a move back above 0.70,’ ING argues.
ING is neutral on NZD/USD around current levels, targeting the pair around 0.70 in 1-month.
NZD/USD – Key Trigger Levels For S-Term & M-Term Setups – NAB
NAB FX Technical Strategy Research discusses NZD/USD technical setup, outlining the key trigger levels for holding a bearish bias on the pair.
“Short Term Strategy (0-4 Weeks)• 0.6900/20 to cap bounces this week ahead of a challenge of double bottom range lows at 0.6818. Break of 0.6818 initially targets 0.6700/30.
Medium Term Strategy (4-12 Weeks)• 0.7000/25 remains a firm level of resistance on a multi-week basis. Weekly close below 0.6818 targets 0.6560/80,” NAB argues.
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