NZD/USD: Switching from a neutral to a negative bias - Westpac

Imre Speizer, Research Analyst at Westpac, suggests that they are switching from a neutral to a negative bias for the week ahead, noting the US dollar has continued to firm since its late March rebound, albeit in grinding fashion.

Key Quotes

“Our multi-week target is the 0.6860- 0.6890 area, which is defined by lows in December and March.”

“The next major NZ data event is not until 20 April when we get Q1 CPI (a large rise is in store) which should, on its own, give the NZD a boost.”

“Beyond that, though, we continue to expect a NZD/USD decline to 0.69 or lower, driven by an upward trending US dollar.”