4 reasons for NZD/USD to trade higher (fair value model is 0.7420)

BNZ have a proprietary fair value model for the New Zealand dollar:

  • Our short-term fair value model estimate for the NZD has pushed up to 0.7420, the highest level since 2014

Analysts at the bank outline 4 points that ought to be NZD positive, in summary:

  1. Our risk appetite index rose to 72% on Friday, its highest level since pre-COVID, (… VIX index continuing to trend lower … high yield credit spreads continuing to grind lower)
  2. commodity prices continue to trend higher (reflective of the positive outlook for the global economy, and inflationary backdrop)
  3. domestic New Zealand economic data point to stronger growth than expected
  4. the RBNZ recently signalled tighter policy from mid next year

0.7420 would take NZD/USD back to its February high

Invest in yourself. See our forex education hub.

Articles You May Like

🔴 Unrevealed Forex PRICE ACTION Trading Strategy
Scalping Forex For A living | One Easy Trading Strategy That Works
Sen Romney says infrastructure bill issues can be solved by end of the week
Leverage is still a weapon of mass destruction in markets
Cable bounces back after test of 1.3800

Leave a Reply

Your email address will not be published. Required fields are marked *