Imre Speizer, Research Analyst at Westpac, suggests that the immediate outlook for NZD/USD is unclear, with the impact of this week’s strong NZ CPI data offset by the US dollar’s recent rebound.
Key Quotes
“Given extreme short positioning, though, there remains upside potential towards 0.6725 over the next few weeks.”
“NZ economic activity has been solid and broad-based since mid-2018. However, there’s probably not enough evidence yet to warrant an RBNZ shift in stance from an easing bias to a neutral one at its November MPS. Q3 GDP (out in Dec) and Q4 CPI may do the trick, but for that we’ll have to wait until the Feb 2019 MPS.”
“Medium term, we remain bearish, based on our Fed/US economy-based expectation that the USD will rise further, and we continue to target 0.64 or below by year end.”
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