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3 Jun 2015
NZD/USD expected to decline towards 0.6870 – JPM
FXStreet (Barcelona) - Niall O'Connor, FX Strategist at J.P.Morgan, remains in favour of a NZD/USD decline towards 0.6870 area.
Key Quotes
“In line with the improved setup for the USD, the commodity currencies have staged a bearish shift raising the risk that the medium term underperformance trends are resuming. In this regard, the key highlight is the breakdown in NZD/USD below the broad range lows from February/March at .7191/.7176. In turn, NZD/USD can extend lower with a closer test of the 2010 low at .7116 can develop. However, a deeper decline into the .6870 area (50% retracement from the 2009 cycle low) is the preferred view.”
Key Quotes
“In line with the improved setup for the USD, the commodity currencies have staged a bearish shift raising the risk that the medium term underperformance trends are resuming. In this regard, the key highlight is the breakdown in NZD/USD below the broad range lows from February/March at .7191/.7176. In turn, NZD/USD can extend lower with a closer test of the 2010 low at .7116 can develop. However, a deeper decline into the .6870 area (50% retracement from the 2009 cycle low) is the preferred view.”