NZD/EUR: 0.6150 area significant - Westpac

The 0.6150 area for NZD/EUR cross is growing in significance as a major support area, after it survived a test last week.

Key Quotes

“It’s not out of the woods though, EUR performing well on the back of USD weakness. Events over the next two weeks include Aug prelim PMIs (Aug 23), Draghi speaking at Jackson Hole (24-26 Aug) and the ECB meeting (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.”