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NZD may Continue Rallying Following Sentiment Extreme

Wednesday, 03 September 2008 00:00:23 GMT

Written by Jamie Saettele, Senior Currency Strategist and David Rodriguez, Quantitative Analyst

NZDUSD Long-Term Technical Forecast

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The NZDUSD top is also in place (notice divergence and the monthly close below the long term support line). For now, the minimum target is below .5927. Again, follow the Daily Technicals for the short term patterns and timing.    

NZDUSD Fundamental Outlook/Interest Rate Forecast

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NZDUSD 09.02.08 21

New Zealand’s interest rate outlook is quite similar to that of Australia, and the New Zealand dollar stands to lose a substantial portion of its interest rate advantage against the US dollar and other forex counterparts. Indeed, the NZD-USD yield differential is predicted to shrink by 2.01 percentage points in the coming year—that which would leave the highly yield-sensitive NZD at a clear disadvantage through the medium/long term. Outlook for the New Zealand dollar remains bearish from an interest rate perspective.

NZDUSD Forex Sentiment Outlook

New Zealand Dollar Forecast to Recover on Forex Sentiment Extreme

 

 

 

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