NZD/USD retains downside risk - Westpac

In view of Imre Speizer, Research Analyst at Westpac, NZD/USD retains downside risks, thanks to a recovering US dollar plus NZ election uncertainty.

Key Quotes

“We target 0.7000. The week ahead will see NZD traders watching for news on coalition talks, the uncertainty a negative for NZD. This week’s NZ event calendar will be minor for markets: electronic retail spending (Tue), REINZ house prices, ANZ consumer confidence (Thu) and manufacturing PMI (Fri). More important will be any announcement of the new government’s composition.”

“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.”