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15 Jul 2013
Flash: NZD/USD volatility expected this week – BNZ
FXstreet.com (Barcelona) - According to Analyst Mike Jones at BNZ, “It was another wild ride in the NZD last week, one that eventually amounted to little.”
Indeed, after climbing to almost 0.7960, the NZD/USD slipped back to finish the week mid-range at around 0.7780. Most of this volatility was driven off gyrations in USD sentiment, as markets oscillated over the expected timing of Fed QE ‘tapering’.
“We can expect more of the same this week, with Bernanke’s mid-week testimony and a bunch of US data set to again test the market’s expectation tapering will begin in September.” Jones adds. Developments in US fixed income markets remain the key near-term driver of the NZD/USD.
Indeed, after climbing to almost 0.7960, the NZD/USD slipped back to finish the week mid-range at around 0.7780. Most of this volatility was driven off gyrations in USD sentiment, as markets oscillated over the expected timing of Fed QE ‘tapering’.
“We can expect more of the same this week, with Bernanke’s mid-week testimony and a bunch of US data set to again test the market’s expectation tapering will begin in September.” Jones adds. Developments in US fixed income markets remain the key near-term driver of the NZD/USD.