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12 Mar 2015
AUD/USD risks a move towards 0.7550, NZD strength unsustainable – OCBC
FXStreet (Barcelona) - Emmanuel Ng, FX Strategist at OCBC Bank, comments on the RBNZ’s view on NZD, and shares the outlook for AUD/USD.
Key Quotes
“This morning, the February labor market numbers came in stronger than expected but these numbers only granted an all too brief reprieve for the AUD, with the pair subsequently below 0.7600.”
“Risks may remain biased towards a test towards the next support around 0.7550.”
“On other fronts, the RBNZ’s Wheeler noted this morning that the latest meeting statement is neutral and that the central bank was “pleased” with the fall in the NZD.”
“Note however that the statement reiterated that, “On a trade-weighted basis, the New Zealand dollar remains unjustifiably high and unsustainable in terms of New Zealand’s long-term economic fundamentals. A substantial downward correction in the real exchange rate is needed to put New Zealand’s external accounts on a more sustainable footing”.”
Key Quotes
“This morning, the February labor market numbers came in stronger than expected but these numbers only granted an all too brief reprieve for the AUD, with the pair subsequently below 0.7600.”
“Risks may remain biased towards a test towards the next support around 0.7550.”
“On other fronts, the RBNZ’s Wheeler noted this morning that the latest meeting statement is neutral and that the central bank was “pleased” with the fall in the NZD.”
“Note however that the statement reiterated that, “On a trade-weighted basis, the New Zealand dollar remains unjustifiably high and unsustainable in terms of New Zealand’s long-term economic fundamentals. A substantial downward correction in the real exchange rate is needed to put New Zealand’s external accounts on a more sustainable footing”.”