NZD/USD Outlook: Neutral this week
We retain a negative medium term bias toward NZD/USD, targeting 0.8400 during the next month. However, the week ahead should see a corrective rebound to 0.8550. The US dollar lost some shine after Friday’s batch of US data, while this week’s NZ labour data has the potential to support the NZD.
Regarding the medium term outlook, the US dollar’s multi-month uptrend is now well established but needs fresh catalysts for advancement. The FOMC minutes (20 Aug), the Jackson Hole conference (21 Aug) and the next FOMC (16 Sep) are the major Fed dates to watch as tapering winds down and Fed communication shifts to the lift-off from the zero-bound.
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