Home NZD/USD likely to extend rally to 0.6760 – Westpac
FXStreet News

NZD/USD likely to extend rally to 0.6760 – Westpac

Imre Speizer, analyst at Westpac, suggests that NZD/USD pair could extend its three-week-old rally to 0.6760 during the week ahead if equity sentiment remains strong and the US dollar fails to fire, but remain bearish beyond that, targeting 0.65 over the next 1-3 months.

Key Quotes

“NZD/USD has been propped up over the past month mostly by a weaker US dollar. There’s plenty of US event risk over the next few weeks to extend or reverse that story, such that the main drivers for NZD/USD are unlikely to be domestic. Indeed, there’s nothing major in the NZ calendar over the next month apart from Q2 CPI on the 16th.”

“The RBNZ MPS on 7 August will be the next big event for NZ markets, with most expecting a rate cut. The case for such was strengthened by this week’s NZIER business confidence survey which fell to a decade low, and indicated the growth slowdown is deeper and more prolonged than we or the RBNZ had expected.”

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.