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29 Apr 2013
Forex Flash: NZD/USD near-term downside compelling - BNZ
FXstreet.com (Barcelona) - According to Mike Jones, head of currency analysts at Bnak of New Zealand, "we are medium-term NZD/USD bulls, but nonetheless find the near-term downside compelling."
Mike adds: "Not only are market participants becoming more concerned about a second quarter slowdown in global growth, but the NZD remains susceptible to an adjustment in ‘extreme’ speculative positioning. The latest IMM data shows net NZD longs, at 27.7k, are nearly three times the long-run average."
"There is a huge amount of event risk this week, with the potential for NZD volatility far higher than usual" Mr, Jones concludes.
Mike adds: "Not only are market participants becoming more concerned about a second quarter slowdown in global growth, but the NZD remains susceptible to an adjustment in ‘extreme’ speculative positioning. The latest IMM data shows net NZD longs, at 27.7k, are nearly three times the long-run average."
"There is a huge amount of event risk this week, with the potential for NZD volatility far higher than usual" Mr, Jones concludes.