Flash: NZD/USD projected at 0.7800 by year-end – BNZ

FXstreet.com (New York) - “Broadly speaking, we’ve taken on board the idea that the trend in the US economy and US dollar has turned – the upshot is that our NZD/USD forecasts have been lowered.” notes Mike Jones, an analyst at BNZ.

According to Jones, “We now see the NZD/USD at 0.7800 by year-end, albeit with risks tilted toward the upside. Our view of fundamental NZ outperformance hasn’t changed, however, and is still reflected in the forecast appreciation of NZD/EUR, NZD/JPY, NZD/GBP and NZD/AUD.” The case for NZD/AUD appreciation is particularly compelling given the ongoing underperformance of the Australian economy.