FXStreet (Delhi) – Research Team at Westpac, suggest that traders can buy NZD and USD/CAD on dips as they are amongst the high conviction trades recommended by the research house.
Key Quotes
“Look to buy dips in NZD to 0.6425 with a stop at 0.6325. With the break above 0.6455 sustained, the 0.6600 area is our next target. NZ data has been upbeat lately, notably dairy prices which jumped again at this week’s GDT auction. In addition, US data has not been compelling enough for markets to price in a rate hike this year.”
“Look to buy dips in USD/CAD to 1.2950 with a stop at 1.28. Recent price action is certainly not helpful to our view here, the push in Brent above $50 the same. However, we are not yet fully convinced by the fundamentals behind the recovery in crude markets. We continue to focus on the ongoing downside activity risks from China and partly related to that, the ongoing risks to the local economy stemming from an extended downturn in the country’s terms of trade.”
(Market News Provided by FXstreet)