NZD/USD Outlook: Up this week
NZD/USD remains hostage to the gyrations of Fed tapering expectations. Near term, NZ fundamental news remains positive while US data is mixed, supporting NZD/USD. A push to 0.8400 is expected this week. Watch out for the FOMC minutes, though. However, we remain on alert for a bounce in US economic data surprises during the month ahead, which would push NZD/USD lower for a retest of 0.8200. Longer term, strong NZ fundamentals and RBNZ tightening should dominate, taking NZD/USD towards 0.8600 by early 2014.
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