Imre Speizer, Research Analyst at Westpac, explains that NZD/USD remains stuck in a sideways range of 0.6690-0.6860, although there are glimmers of upside bias.
Key Quotes
“A break above 0.6860 would signal a move to the 0.6950-0.7050 area during the weeks ahead.”
“An upside bias would be justified given speculator positioning (CFTC) is close to a record level of shortness.”
“Multi-month, we remain bearish given NZ economic growth is slowing, NZ-US yield spreads should fall further, and the US dollar should rise further. We expect to see sub-0.6700 this year.”