Forex Flash: NZD rallies on milk, strong buy vs. EUR – Westpac

FXstreet.com (Barcelona) - The data calendar for the week ahead is void of any top-tier releases. QV house price data for March is released Tuesday and the Mar Business NZ PMI is due Thursday.

Regardless of this lull, the NZD/USD has outperformed over the last week on the back of a strong dairy price auction. Small amounts of rain and an improved rainfall outlook also provide hopes of reduced drought effects. According to Global FX Strategist Sean Callow at Westpac, “The break above 0.8355 put the kiwi back into positive-trend mode. The quiet local calendar keeps the near-term event risk firmly offshore but otherwise the pair looks a buy on dips towards 0.8470. We particularly like the NZD against EUR, GBP and AUD.”