NZD/USD: Setback for further upside prospects - Westpac

NZD/USD’s two-week rebound off 0.6545 has stalled at the key 0.6720 and today’s weak business confidence update has set back, but not extinguished, prospects for further upside, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“The RBNZ will need to see actual activity, not just sentiment, falling significantly before pressing the rate cut button.”

“During the next three weeks we get important economic data updates which provide potential for a brief data-led squeeze on NZD shorts to the 0.68-0.69 area.”

“Multi-month though, we remain bearish based on our stronger-USD view, targeting 0.64 by year end.”