In its latest client note, Westpac’s analysts made downward revisions to the NZD/USD price forecast, citing strengthening US dollar and downbeat New Zealand’s fundamentals as some of the key reasons.
Key Quotes:
“The US dollar should strengthen further if the Fed hikes further this year, and that will push NZD/USD lower.
In addition, the NZ-US interest rate advantage has been eroded, removing one of the previous attractions of the NZD.
Further, domestic data is indicating the NZ economy is slowing. We expect NZD/USD to fall to 0.64 or lower by year end.”
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