NZD/EUR: Corrective rebound to target 0.62 - Westpac

According to Imre Speizer, Research Analyst at Westpac, NZD/EUR found a bottom at 0.60 and this corrective rebound is expected to target 0.62 area.

Key Quotes

“The event calendar this week includes GE & EZ ZEW (19th) and Markit flash PMI surveys (22nd), EZ final CPI (18th), cons. conf. and ECB bulletin (21st). The German election is on the 24th. Germany’s general election is likely to see Merkel’s CDU/ CSU lead a coalition once again.”

“3 months ahead: European economic data is improving, witness sentiment surveys at multi-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. Barring political shocks, NZD/EUR should gravitate lower to the high 0.50s.”