Sell NZD/USD above 0.7380 – Natixis

Nordine Naam, Research Analyst at Natixis, notes that the NZD/USD recovered back above 0.73 in the week ended, mainly because of the weakness of the US dollar because of concerns Donald Trump could snatch a victory.

Key Quotes

“The New Zealand dollar was also buoyed by the good employment data and by signs that Chinese growth is picking up. Even so, the Reserve Bank of New Zealand still considers growth and inflation as too weak, for which reason it could decide to cut further its key policy rate, down 25bp to 1.75%. Under these conditions, the NZD/USD can be expected to resume its descent in coming weeks, particularly if there is a victory of Hillary Clinton. We recommend selling the NZD/USD above 0.7380.”