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Andreas Zanin
Analysis | September 14, 2021

NZD/USD, NZD/JPY & GBP/NZD: outlook and forecast

The NZD has been the strongest major over the last two weeks and is now overbought and we expect a correction to the downside. Our view of the fundamentals, technicals, and sentiment below.

NZD The Good News Discounted

The market as we noted in last week’s article expects the RBNZ to raise rates by up to 0.5% at their October meeting this is now discounted in the price. While the market is looking for them to hike they might actually stay on hold as global growth slows.

The NZD has also been firm on the markets the Global economy will see strong economic growth going forward which is bullish for commodities and commodity currencies such as the NZD. However if we look at global PMI’S a leading indicator in terms of economic growth they have turned down which indicates global growth has peaked.

Is there any more good news coming for the NZD in the short term? We don’t think so and view it as a sell against the USD. JPY and GBP.

Technical Analysis

Major resistance levels in terms of NZD/USD is 0.7200 and in NZD/JPY 0.7900 we view the NZD as a sell-off these levels if we rally or on breaks of support if we don’t rally. In terms of GBP/NZD, we view it as a buy on an upside breakout.

 

Research provided by LearnCurrencyTradingOnline.com

The given data provided contains additional information, forecasts, analysis and market reviews published on the Key to Markets website.

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