NZD: Negative bias for the three months ahead - Westpac

Imre Speizer, Research Analyst at Westpac, holds a negative bias for the NZD for the three months ahead.

Key Quotes

“While NZ’s macroeconomic backdrop is clearly NZD positive (this week’s earthquake should have only a modest impact on growth) the international backdrop is the opposite.”

“The US dollar is on a tear, and will be supported by US monetary tightening and fiscal easing for some time. In addition, there are risks from potentially trade-averse policies from the new US administration.”

“Technically, a sustained break below 0.7060 (a head and shoulders neckline) would signal a further decline to 0.6600.”