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20 Sep 2013
NZD/USD extends its gains post super dovish FOMC
FXstreet.com (Athens)- The NZD/USD is climbing higher and higher in post FOMC era and seems that the post-FOMC surge higher in the “kiwi” might be sustained.
The NZD/USD still trends to the upper level after Bernanke Balk
The NZD/USD has been sky rocketing since Fed’s president Bernanke decided to throw a “taper tantrum”. The “kiwi” is flying post FOMC decision as Bernanke made it clear that Fed wants to move cautiously and keep monetary policy loose for a considerable period, as long as the data are not solid enough to act on a different way. As long as “tapering” is an issue heavily data dependent and Fed does not proceed on with “tapering”, the “kiwi” might take further boosting. What’s more, The NZX 50 benchmark also posted another all-time high to close up 49.40 points, or 1.04 per cent to 4753.03. Elaborating on, this is the fourth record high for the local bourse in as many days.
Strategic Bias on NZD/USD
BNZ Currency Research Strategy Team suggest that “We expect 0.8350 for NZD/USD by year end. Moreover, with momentum positive and a short-term NZD/USD ‘fair-value’ range of 0.8100-0.8700 (as estimated by our own valuation model) we wouldn’t want to rule out a test of 0.8600/0.8650 over the next few weeks.”
The NZD/USD still trends to the upper level after Bernanke Balk
The NZD/USD has been sky rocketing since Fed’s president Bernanke decided to throw a “taper tantrum”. The “kiwi” is flying post FOMC decision as Bernanke made it clear that Fed wants to move cautiously and keep monetary policy loose for a considerable period, as long as the data are not solid enough to act on a different way. As long as “tapering” is an issue heavily data dependent and Fed does not proceed on with “tapering”, the “kiwi” might take further boosting. What’s more, The NZX 50 benchmark also posted another all-time high to close up 49.40 points, or 1.04 per cent to 4753.03. Elaborating on, this is the fourth record high for the local bourse in as many days.
Strategic Bias on NZD/USD
BNZ Currency Research Strategy Team suggest that “We expect 0.8350 for NZD/USD by year end. Moreover, with momentum positive and a short-term NZD/USD ‘fair-value’ range of 0.8100-0.8700 (as estimated by our own valuation model) we wouldn’t want to rule out a test of 0.8600/0.8650 over the next few weeks.”