HALISTER1: Kiwi May Test Sept. 9 High After GDP Data, Brainard: Analysis

Kiwi May Test Sept. 9 High After GDP Data, Brainard: Analysis

(Bloomberg) -- NZD/USD may test 0.7413 if 2Q GDP is better than expected, Bloomberg strategist Michael Wilson writes.
  • Likelihood of hitting that level could increase if 2Q current account data beats est. tomorrow, which may prompt upward revision to GDP forecasts
  • 2Q GDP currently seen +1.1% q/q (range 0.4%-1.3%), according to median est. of 16 economists in Bloomberg survey; y/y seen +3.6%; data due 10:45am local on Sept. 15
  • NZD/USD now down 0.1% at 0.7344 vs 0.7336/64 range
    • Momentum indicators allow further upside: RSI at 56; MACD above signal line, both above zero
    • Spot bounced off 0.7291 low overnight, next to 61.8% Fibonacci retracement from July 21 low
  • Fed pricing decreased in wake of Brainard comments last night; broad U.S. dollar weakness since
  • NOTE: Michael Wilson is an FX strategist who writes for First Word. The observations he makes are his own.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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