Forex Flash: NZD/JPY well supported, seeks 82.00 6m target – BNZ

FXstreet.com (Barcelona) - The fragile global recovery, while mixed and uneven, is continuing. According to the BNZ Research Team, “We expect global growth to accelerate to 3.3% in 2013 and 3.9% in 2014. If realized, this should support ongoing gains in NZ’s commodity export prices and keep the ‘high beta’ NZD/JPY well supported.” They point to a NZD/JPY three-month target of 79-80.00, while a six-twelve month target stands at 81-82.00.

Consensus forecasts for Japanese economic growth have been revised up in recent months as forecasters factor in additional BoJ easing. Still, there are no guarantees easy money will flow through to an improved economy. What’s more, 2014 Japanese growth forecasts look sick at just 0.8%. “By contrast, we expect the NZ economy to expand 3.0% in 2013 and 3.2% in 2014.” the team notes.