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11 Feb 2013
Forex Flash: New Zealand strategy profile – Westpac
According to the Westpac Strategy Team, “The NZD/USD uptrend to 0.8570 next is alive as long as the 0.8250 level is not breached. That being said, 0.8300 is key because a break below that would probably send it towards 0.8100.”
In looking towards NZ swaps, “the positive trend in NZ 2yr yields targets
3.18% next, as markets gradually price in the next tightening cycle, though a correction to 2.75%-2.80% first would not surprise.” the team adds.
Finally, assuming the NZ curve remains range bound, a near term flattening should occur this week. Since July 2012 the 2-10yr swap curve has remained inside a contracting range and its upper and lower boundaries are currently.
In looking towards NZ swaps, “the positive trend in NZ 2yr yields targets
3.18% next, as markets gradually price in the next tightening cycle, though a correction to 2.75%-2.80% first would not surprise.” the team adds.
Finally, assuming the NZ curve remains range bound, a near term flattening should occur this week. Since July 2012 the 2-10yr swap curve has remained inside a contracting range and its upper and lower boundaries are currently.