NZD: Set To Remain Soft Vs AUD, EUR, GBP, CAD; Rallies A Sell – Nomura

Noumra FX Strategy Research expects relative NZD underperformance against the AUD*, EUR, GBP and CAD to continue.

We project EUR/NZD, GBP/NZD and AUD/NZD to rise up towards 1.74, 1.94 and 1.11 respectively by year-end, and for NZD/CAD to ease to 0.87," Nomura projects.

"Key relative fundamentals have moved against the NZD over recent months.

Political uncertainty is an added headwind, and has increased following the release of the final election count. There should be political clarity later this week.

The NZD’s reaction should be asymmetric, with a relief rally on a National-led government, creating an opportunity to sell into, in our view," Nomura argues.

Source: Nomura Securities ResearchOriginal Article