Imre Speizer, Research Analyst at Westpac remains bullish on NZD/USD pair for the week ahead, with potential for a retest of 0.7375 if the US dollar’s weakness persists.
“NZD/USD’s two-month old rally is mainly a function of continuing weakness in the US dollar. However the rally is looking technically stretched, and speculators are again quite long, such that a decent correction sometime in the next few weeks is plausible.”
“Data this week is minor for markets: QV house prices and NZIER quarterly business sentiment. More important will be the GDT dairy auction on Tue. Whole milk powder futures are currently pricing a 1% rise.”
“Three months ahead: Our medium term outlook for NZD/USD is mainly dependant on the outlook for the US dollar. A rebound in that by year end could drag NZD/USD back to the 0.69 area. However, US fundamental developments (economic and political) are not promising.”