NZD/USD could extend beyond the 0.6700 area - Westpac

According to analysts at Westpac, NZD/USD has risen almost 2c over the past week, and could extend beyond the 0.6700 area during the week ahead.

Key Quotes

“The main driver has been the slippage in the US dollar, which has been buffeted by market expectations of Fed rate cuts plus trade developments. The relationship between NZD/USD and the US dollar has strengthened over the past two months. And since the beginning of this year, NZ-US yield spreads have become more important (compared to mid-2018 when they hardly mattered). In contrast, NZD/USD is paying less attention to commodity prices, which explains why fair value models indicate undervaluation.”