NZD/USD outlook is bearish next week – TDS

By FXStreet FXStreet (Guatemala) – Analysts at TD Securities offered an insight into the NZD/USD.

Key Quotes:

“NZD: The upcoming Q4 CPI reading (Tuesday/Wednesday) sets the stage for the RBNZ policy meeting in the following week. Here, we expect a print of –0.5% q/q, well below the market’s (-0.2%) and RBNZ’s forecasts. This should have the RBNZ intensify its easing bias, or at least make it more credible, as the January meeting comes packaged with a quarterly OCR review.

At the same time, this week’s fortnightly dairy auction comes as milk powder futures prices have slid by nearly 12% since the previous auction (15 December). This combination should keep pressure on the NZD to weaken further this week. For NZDUSD 0.6430 is the key pivot. A clear move lower from here targets support around 0.6235 ahead of the August spike low of 0.6130.”
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Source:: FX Street