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Flash: NZD/USD could test 0.7685 this week – Westpac

FXstreet.com (New York) – The NZD/USD continues to consolidate its large May/June decline, stuck inside a 0.7685-0.8135 range, notes Sean Callow, a Global FX Strategist at Westpac.

Key quotes

“Near-term, however, the NZD/USD looks weak and should test the bottom of this range during the week ahead.”

In terms of NZ swaps, “The uptrend in swap yields should take a breather this week. 2yr swaps could correct lower to 3.36% as the RBNZ’s LVR restriction provides some uncertainty around the tightening cycle.”

“August’s US-led steepening is starting to look stretched and vulnerable to a reversal of the NZ curve. Longer term, flattening remains …read more