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NZD/USD: Outlook down this week - Westpac

FXStreet (Bali) - The outlook for NZD/USD this week is down, in view of Imre Speizer, FX Strategist at Westpac, noting that a target of 0.8200 by year end remains in place.

Key Quotes

"The decline in NZD/USD, which started on 10 July from 0.8836, has resumed (following a brief correction from 0.8409 to 0.8514). From here we should see a continuation to 0.8300 during the weeks ahead."

"US factors pushing the USD higher are the main explanations, but NZ’s soft economic patch has also contributed (our short term economic data pulse model is currently pointing downwards), as has the RBNZ’s intervention threat voiced in July."

"This week’s NZ calendar is of moderate market importance. The trade balance is on Tuesday, food prices Wednesday, and building permits and monthly business confidence Friday."

"The US calendar this week has a reasonable run of data with Chicago National Fed Activity Index and Dallas Fed Monday; durables plus Richmond Fed Tuesday; revised Q2 GDP on Thursday and PCE plus Chicago PMI Friday. There are mixed views on revised Q2 GDP with net export drag likely to be revised lower but likely to be offset by inventory data. Our gut feel suggests a mild downward revision. Fed surveys are unlikely to give clear strong trend here."

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