NZD/USD is currently trading at 0.6523, down -0.07% on the day, as the kiwi still suffers downside momentum but unless the pair dips below 0.65 further losses are not expected. Economists at Westpac see NZD/USD trading at 0.67 in the coming months.
Key quotes
“The kiwi retains slight downward momentum but needs to sustain a break below 0.6500 to signal larger losses.”
“Risk sentiment is expected to remain firm into year-end, supported by unprecedented global central bank and government stimulus.”
“NZ’s economy is expected to outperform the US, and NZ commodity prices are resilient. Partly offsetting these positive effects is a declining yield spread which has further to run. The net effect should lift NZD/USD to 0.67 during the next few months.”
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