Recent gains in NZD/USD are due to falling US dollar, according to analysts at Westpac Institutional Bank. NZD/USD is trading at 0.6013.
Key quotes
“The best explanation for the US dollar’s recent fall is that USD short term funding stresses have been alleviated in a number of areas by Federal Reserve actions, slowing the earlier scramble for USD cash.”
“In turn, that has lifted the NZD/USD exchange rates. Such resilience doesn’t necessarily imply the worst is over, and we forecast the kiwi to fall further over the next few weeks, NZD/USD to see the 0.55-0.57 area.”
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