NZDUSD: Likely to extend its slide to 0.6950 or below - Westpac

Imre Speizer, Research Analyst at Westpac, suggests that the NZD/USD is likely to extend its month-old slide during the weeks ahead, to 0.6950 or below.

Key Quotes

“A resurgent US dollar has been, and will continue to be, the main factor. But there are local influences too: stalled dairy prices, persistently low inflation, and a highly likely RBNZ rate cut on 10 November more than offset high economic activity.

Technically, the break below a head-and-shoulders neckline at 0.7220 on 4 Oct signalled a move to 0.6950 during the weeks ahead. That level coincides nicely with a major low formed in July.

Further ahead, RBNZ easing combined with Fed tightening should see NZD/USD at 0.69 by year-end.”