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Following Wednesday’s positive surprise from NZ jobs data, economists at Westpac are watching the NZD/USD pair for an upside break above 0.7225.

Key quotes

“Wednesday’s positive surprise from NZ jobs data follows a similar surprise from CPI inflation data the previous week, and leaves a picture of economic strength and shrinking capacity. Given such fundamental support for the NZD, we are watching for an upside break above 0.7225.” 

“Medium-term, we retain our long-held bullish outlook, targeting 0.7500 by April (that was the peak area between 2016 and 2018).” 

“Key drivers are expected to be renewed USD weakness and NZ economic growth outperformance.”