18 Jul 2013
Flash: NZD/USD remains resistant to USD strength – BNZ
FXstreet.com (New York) - Overall, it’s been a fairly tame offshore session for currency markets, as investors stopped to pause for breath following all the post-Bernanke excitement, notes Mike Jones, an analyst at BNZ.
USD emergent upside bias
According to Jones, “A general bias to push the USD higher has re-emerged after some upbeat US economic data restored confidence in the US recovery – the more optimistic sentiment also pulled US bond yields and US equities higher.”
However, “for the moment the NZD/USD remains fairly resistant to the headwinds of a stronger USD. Indeed, the currency essentially tracked sideways overnight in a tight 0.7850-0.7910 range. Speculative investors appear far more inclined to express a positive USD view in those currencies with dovish central banks like the JPY, AUD, and to a lesser extent the EUR.”
USD emergent upside bias
According to Jones, “A general bias to push the USD higher has re-emerged after some upbeat US economic data restored confidence in the US recovery – the more optimistic sentiment also pulled US bond yields and US equities higher.”
However, “for the moment the NZD/USD remains fairly resistant to the headwinds of a stronger USD. Indeed, the currency essentially tracked sideways overnight in a tight 0.7850-0.7910 range. Speculative investors appear far more inclined to express a positive USD view in those currencies with dovish central banks like the JPY, AUD, and to a lesser extent the EUR.”