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2 Apr 2013
Forex Flash: NZD looks to re-enter positive trend – Westpac
FXstreet.com (Barcelona) - According to Global FX Strategist Sean Callow at RBS, “The NZD/USD move above 0.8355 puts the kiwi back into positive-trend mode. A quiet local calendar keeps the near term event risk firmly off shore but otherwise the pair looks a buy on dips towards 0.8470.”
In terms of NZ swaps, after finding a base, 2yr NZ swap yields can continue their move higher. With little domestic data due, the NZ market will be driven by off shore developments. Meanwhile, “the move higher in NZ swap yields has been driven by the front-end helping the 2-10yr curve flatten, we think this can continue in coming sessions.” Callow adds.
In terms of NZ swaps, after finding a base, 2yr NZ swap yields can continue their move higher. With little domestic data due, the NZ market will be driven by off shore developments. Meanwhile, “the move higher in NZ swap yields has been driven by the front-end helping the 2-10yr curve flatten, we think this can continue in coming sessions.” Callow adds.