NZD/USD: 0.71 levels vulnerable during the next week or two - Westpac

Election uncertainty weighed on the NZD in the run-up to the election and for a day afterwards, but such uncertainty is now fully priced, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“The next significant political event will be the announcement of the government’s composition, sometime after 7 October.”

“Until then, the NZD will be influenced mostly by US dollar direction. As Rich points out in the USD section, there are near term positives for the USD such as the Trump tax reform proposal, and these should weigh on NZD/USD. We see 0.71 as vulnerable during the next week or two.”