The further breach of 0.7000 leaves NZD/USD at risk of sliding towards 0.6800. Longer term, though, economists at Westpac forecast the kiwi at 0.7500 by mid-year.
Key quotes
“The downward correction could extend as far as 0.6800 over the next few weeks. Beyond that, we retain a cautious bullish stance.”
“We continue to expect global risk sentiment to remain elevated; supported by unprecedented central bank and government stimulus, as well as vaccine developments. Commodity currencies should strengthen in that environment.”
“Interim resistance is likely between 0.7010-40.”
“NZD/USD targets 0.7500 by June.”
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