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Imre Speizer, Research Analyst at Westpac, notes that the NZD/USD has continued to slide, reaching their target from last week of 0.6550.

Key Quotes

“From here, a pause is warranted, but risks remain skewed to the downside, and we expect to see 0.6400 by year end.”

“Last week’s dovish RBNZ surprise has been priced in, but the USD continues to rise and emerging currencies remain under downward pressure. Over short periods, the NZD has been sensitive to falls in the CNY, for example.”

“NZD-supportive factors are thin on the ground at present, the main one being the near-record short NZD speculative futures positioning. But that’s been extreme for some time, and arguably has served to only slow the fall rather than trigger a reversal.”