28 Jun 2013
Flash: NZD/USD forecast lowered to 0.78 by end 2013 - BNZ
FXstreet.com (Barcelona) - As the uptrend in US bond yields stays intact and the USD strength continues, Mike Jones, Currency Strategist at Bank of New Zealand, and his team, have lowered its NZD/USD forecast to 0.78 by year-end.
As Jones notes, "In late May, we said that if the FOMC relaxes its easing bias and US yields break convincingly higher the NZD/USD pullback could extend. Clearly, this risk is playing out, although the extent and timing of the USD rally has caught us, and most of the market, on the hop." However, Jonse still sees risks tilted toward the upside in NZD/USD.
As Jones notes, "In late May, we said that if the FOMC relaxes its easing bias and US yields break convincingly higher the NZD/USD pullback could extend. Clearly, this risk is playing out, although the extent and timing of the USD rally has caught us, and most of the market, on the hop." However, Jonse still sees risks tilted toward the upside in NZD/USD.