NZD: Await a pullback before re-establishing longs - Westpac

Research Team at Westpac, notes that the NZD/USD is testing a one-year high around 0.7300 with potential to break higher this week.

Key Quotes

“Global risk sentiment is the main driver, with NZ's high real yields continuing to attract capital inflows. NZ’s data calendar this week holds little importance for markets but the speech from RBNZ Asst. Gov. McDermott on Wed, on how they decide the OCR will be closely read, even though yesterday's Bulletin published most of the likely contents.

Technical: Weekly charts still looking constructive though NZD is approaching top end of the trend channel. Momentum and trend strength also fading on the dailies. Await a pullback before re-establishing longs.”