BNZ - "In the short-term, we suspect the NZD/USD will continue to trade at the whim of offshore risk appetite and equity market sentiment. Key in this regard is not only the strength of global data (which for the moment remains encouraging), but also US political developments with regard to the spending cuts portion of the fiscal cliff and the fast approaching US debt ceiling. The fundamentals underpinning the NZD haven’t changed; the grinding NZ economic recovery is well placed to continue, NZ commodity prices are trending higher, and the global economy is past the worst. As long as these supportive factors remain in play, NZD/USD dips towards 0.8000 will be short-lived in our view."