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13 Feb 2013
Forex Flash: NZD/JPY dips to be capped by 76.90; launch to 82.00 expected - BNZ
Regardless of the G7’s view, Mike Jones, currency strategist at Bank of New Zealand, expect "the tailwinds under the NZD/JPY to remain in place as NZ-JP interest rate differentials have already widened sharply" he says.
He also expects "this trend to continue as the RBNZ stands guard against a frothy housing market (reaffirmed by yesterday’s REINZ data) and the Bank of Japan adopts an even more dovish stance under its new Governorship."
Mr. Jones suggests that dips in the NZD/JPY "will be limited to support at 76.90 in our view, with a year-end forecast of 82.00."
He also expects "this trend to continue as the RBNZ stands guard against a frothy housing market (reaffirmed by yesterday’s REINZ data) and the Bank of Japan adopts an even more dovish stance under its new Governorship."
Mr. Jones suggests that dips in the NZD/JPY "will be limited to support at 76.90 in our view, with a year-end forecast of 82.00."