NZD/USD: Neutral bias for the week ahead - Westpac

Imre Speizer, Research Analyst at Westpac, notes that the NZD/USD has been locked inside a 0.70- 0.71 range since mid-March and given the absence of any NZ event risk during the week ahead, they adopt a neutral bias, while acknowledging the potential for a stronger US dollar.

Key Quotes

“A sharp USD rally could easily take NZD/USD down to 0.69.”

“Further out, we see risks of a weaker USD around the US government funding negotiations late April, which could push NZD/USD towards 0.73, but beyond June we expect the more constructive US outlook to weigh, and we target 0.67 by year end.”