After a peak above 0.7400 in late February and subsequent retrace on the back of a stronger USD, NZD/USD slid further recently on the introduction of government policies designed to cool and rebalance the domestic housing market. Looking ahead, economists at CIBC Capital Markets, expect a tempered pace of appreciation for the kiwi in the coming months. NZD/USD appreciation forecasts intact “We still expect strength to occur. The basis for our positive view is underlined by a strong rebound in domestic activity, that in turn has been and will now remain supported by accommodative monetary and fiscal policy. Considering that, the current pullback to around 0.7000 allows entry to bullish trades, at levels we believe offer attractive risk reward.” “On the cautionary side, there are a handful of indicators which suggest previous undervaluation of the NZD has largely been unwound. The rate spread relationship is one. A greater risk for the NZD would come from a more protracted sell-off in risk assets more generally. We will continue to track these indicators and others for confirmation of support for the currency to rally toward our forecast target of 0.74/75. Else, for a deeper correction to be in prospect before that occurs.” “For NZD/USD 0.7000 is a key pivotal level, as is the 200-day moving average at 0.6880. A weekly close and period below either or both would suggest a return of upside will be delayed.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/HUF to slip towards the 2019-2021 uptrend line at 355.82 – Commerzbank FX Street 1 year After a peak above 0.7400 in late February and subsequent retrace on the back of a stronger USD, NZD/USD slid further recently on the introduction of government policies designed to cool and rebalance the domestic housing market. Looking ahead, economists at CIBC Capital Markets, expect a tempered pace of appreciation for the kiwi in the coming months. NZD/USD appreciation forecasts intact "We still expect strength to occur. The basis for our positive view is underlined by a strong rebound in domestic activity, that in turn has been and will now remain supported by accommodative monetary and fiscal policy. Considering… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.