NZD/USD: Shifting negative bias to neutral - Westpac

Imre Speizer, Research Analyst at Westpac, is shifting from a negative bias to neutral for the week ahead for NZD/USD.

Key Quotes

“A likely unwind of long-USD positions, catalysed by the FOMC which failed to meet the market’s elevated expectations, should dominate any local surprises (such as today’s weak GDP data).”

“This week’s rebound from 0.6890 to 0.7049 could easily extend to the 0.7100 area during the week ahead. Further out, we wouldn’t rule out a revisit of the 0.7300 area.”

“The RBNZ takes centre stage in the NZ event calendar next Thursday, although we’re not expecting anything to significantly shift market pricing. Weaker dairy prices and slower housing and economic growth are mostly offset by stronger inflation and a weaker NZD TWI, leaving the RBNZ to reiterate its long-time-on-hold stance.”