* We revise up our NZD forecasts
* Acting on the upside risks we’ve been stressing
* As Bernanke’s baulk necessitates a weaker USD view
* We expect 0.8350 for NZD/USD by year end
In a nutshell
We have revised up our NZD/USD forecasts. We now see the NZD/USD at 0.8350 by year-end, and the NZ TWI at 79.00. This follows yesterday morning’s surprisingly dovish FOMC meeting, and its negative implications for the USD.
In short, we think the post-FOMC surge higher in the NZD will be sustained. From a practical perspective, a buy on dips strategy remains appropriate. It’s just that the ‘buy zone’ may have moved up from around 0.7700 to around 0.8000.
Read the full report: FX Research
BNZ