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Forex Flash: NZD/USD not overvalued; 0.90 test at risk - BNZ

FXstreet.com (Barcelona) - Despite the NZD/USD recently rise to levels above 0.86, in view of Mike Jones, currency strategist at BNZ, the currency "is not yet ‘expensive’ according to our model", adding that "the recent highs around 0.8600 can be entirely justified by the augmented set of short-term fundamentals we now use."

Mike notes that unless one thinks on... the Fed is about to halt or reverse QE, NZ commodity prices are about to fall off a cliff, or offshore risk appetite is about to dry up, there is little reason to expect the NZD/USD to head substantially lower anytime soon."

"We expect fair-value and the NZD/USD to remain at high levels for the remainder of this year. A push up to 0.9000, as is still a risk, would not be too much of a stretch, as long as the global recovery remains on track" Mike concludes.

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