NZD/EUR: Potential to retest the 0.6150 area - Westpac

NZD/EUR has potential to retest the 0.6150 area seen in May as persistently outperforming EU economic data suggests further strength ahead in the EUR, explains Imre Speizer, Research Analyst at Westpac.

Key Quotes

“The event calendar this week carries some punch – Q2 GDP, final July CPI, and ECB minutes. Beyond that, Draghi speaks at Jackson Hole (24-26 Aug) and the ECB meets (7 Sep).”

“3 months ahead: European economic data is improving, witness sentiment surveys at six year highs. However, after easing recently, political tensions in the EU could still resurface, with Austria calling early elections in 4Q, and a chance of early elections in Italy. Adverse developments could push NZD/EUR beyond 0.66.”