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13 Jun 2014
NZD/CAD: Booking some profits - Westpac
FXStreet (Bali) - Westpac Global Strategy Group has taken some profits off the table on NZD/CAD.
Key Quotes
Last week we argued that the NZ$ was due for a sharp re-rating within the commodity bloc. We recommended buying NZD/CAD at 0.9280 and adding on weakness to 0.9220. We targeted a return towards 0.9500."
"As we expected, the RBNZ raised the cash rate to 3.25% yesterday, and largely reiterated the path for interest rates that we expected. Our economists now expect a fourth consecutive OCR hike at the July review. This should continue to underpin the NZ$ within the commodity bloc."
"However, we are concerned that markets have become complacent about events in Iraq. This will limit upside in NZD in the short term. Thus, we recommend taking profit on long NZD/CAD. We have closed our long position from 0.9280 at 0.94185 for a return of 1.5%."
"We will look to add on weakness in the NZD, but would prefer to look for opportunities closer to next week's Q1 GDP."
Key Quotes
Last week we argued that the NZ$ was due for a sharp re-rating within the commodity bloc. We recommended buying NZD/CAD at 0.9280 and adding on weakness to 0.9220. We targeted a return towards 0.9500."
"As we expected, the RBNZ raised the cash rate to 3.25% yesterday, and largely reiterated the path for interest rates that we expected. Our economists now expect a fourth consecutive OCR hike at the July review. This should continue to underpin the NZ$ within the commodity bloc."
"However, we are concerned that markets have become complacent about events in Iraq. This will limit upside in NZD in the short term. Thus, we recommend taking profit on long NZD/CAD. We have closed our long position from 0.9280 at 0.94185 for a return of 1.5%."
"We will look to add on weakness in the NZD, but would prefer to look for opportunities closer to next week's Q1 GDP."