NZD/USD needs to clear 0.7340 to look convincing in a bullish sense – Westpac

Imre Speizer, Research Analyst at Westpac suggests that NZD/USD cross needs to clear 0.7340 level to look convincing in a bullish sense, after last week’s upside ride.

Key Quotes

“The flicker of life in the US dollar the previous week was short-lived, its multi-year decline extending further and boosting all the majors against the USD. NZD/USD went along for the ride, arresting its own decline, but needs to clear 0.7340 to look convincing in a bullish sense.”

“This week’s NZ event calendar is second-tier for markets: REINZ house sales, electronic retail spending, food prices, ANZ consumer confidence, and manufacturing PMI.”

“Three months ahead: Our medium term outlook for NZD/USD is largely dependent on the outlook for the US dollar. A persistent rebound in the US dollar by year end is needed to pull NZD/ USD back to the 0.70 area.”