Forex Flash: NZD/USD strategy profile – Westpac

FXstreet.com (Barcelona) - The New Zealand calendar highlight next week is the RBNZ’s survey of inflation expectations (Tuesday). According to Sean Callow, a Global FX Strategist at Westpac, “We expect a soft outcome given the surprisingly low level of actual inflation during the past few quarters.” - also out will be services PMI (Monday), migration and credit card spending (Tuesday), and the trade balance (Friday).

“Despite strong NZ fundamentals, most recently exemplified by the annual budget, which saw public borrowing requirements fall, the currency remains hostage to the whims of the US dollar which has surged recently. Momentum in NZD/USD is negative, and the break below trend support since July points towards 0.7800. Extreme long speculative positioning remains the NZD’s strongest headwind.” Callow warns.