NZD/USD: Neutral outlook for the week ahead - Westpac

Imre Speizer, Research Analyst at Westpac, points out that NZD/USD has fallen 3c over the past two weeks, mostly a result of a slightly firmer US dollar. However the USD’s recovery looks fragile, leaving them with a neutral outlook for NZD/USD for the week ahead, he further adds.

Key Quotes

“Further out, apart from the potential for a USD recovery, there remain positioning and technical headwinds for the NZD. A fresher negative is the recent RBNZ intervention warning. We see little chance of that happening at this juncture, the published criteria for intervention not yet satisfied. But the RBNZ warning should at least sow some doubt among speculative longs.”

“Longer term, we target 0.70 by year end.”