Forex Flash: NZD/USD strategy profile – Westpac

FXstreet.com (Barcelona) - The economic calendar is busy but second tier next week. We have food prices (Monday), retail sales volume (Tuesday), PMI (Thursday), PPI and monthly consumer confidence (Friday), and REINZ housing sometime during the week. More important perhaps will be the Budget (Thu), which should deliver an on-target return to surplus by 2015.

According to Global FX Strategist Sean Callow at Westpac, “The NZD/USD has looked heavy this month and we favor a test of 0.8360 below. A break would send it to 0.8250. The NZ data pulse is riding high but vulnerable to a fall, particularly if the drought’s effects are apparent in the higher frequency data. Speculative positioning remains very high and could be spooked by the negative signal from the RBNZ’s covert selling of NZD.”