After a largely uneventful Friday night, the NZD has opened the week under downward pressure. However, if you squint your eyes through the recent volatility, the NZD/USD (at 0.8350) is barely changed from where it ended up in last week’s post-FOMC USD sell-off.
The weekend’s German elections delivered a decisive victory for Angela Merkel. The associated kneejerk EUR buying has dominated the Monday-morning open. Losses in NZD/EUR and AUD/EUR have tended to weigh on the NZD/USD and (particularly) the AUD/USD in the usual liquidity-starved conditions. To us, this looks like a good opportunity to ‘buy the dip’, ahead of a potential near-term strengthening.
Read the full report: FX Daily
BNZ