Forex Flash: NZD/USD heading down to 0.8230 in next few weeks – Westpac

FXstreet.com (Barcelona) - According to Global FX Strategist Sean Callow at Westpac, “We see the NZD/USD heading down to at least 0.8230 during the next few weeks.” In terms, of NZ swaps, the near term momentum is negative, suggesting a further decline to the 2.75%-2.80% area is on the cards, the RBNZ meeting on Wednesday a potential catalyst.

Should the RBNZ statement place more emphasis on the high NZD than on the housing boom, the lower level will be tested. Finally, the NZ curve should continue to flatten as global risk aversion depresses interest rates everywhere, and a resurgence in off shore demand for NZGB’s adds more weight to mid-curve and longer yields.