NZD/USD to march forward to beat the 0.70 level – Westpac

Hawkish Reserve Bank of New Zealand's commentary plus encouraging vaccination developments are local positives for the kiwi. Therefore, the NZD/USD is set to surge above the 0.70 level during the next week, analysts at  Westpac report.

See: NZD/USD has additional support from RBNZ as OCR hikes are still on the table – ANZ

NZ vaccinations: slow start, now sprinting

“NZD/USD breakdown in the wake of the local covid outbreak was not sustained, the recent rebound with potential to rise above 0.7000 during the week ahead.”

“The USD has weakened as global concerns about pandemic outbreaks and Fed tapering have receded.”

“The RBNZ has recently delivered via commentary some strong hawkish signals, that it will start hiking in October and a 50bp move cannot be ruled out.”

“Although the delta case count in NZ continues to accelerate, officials deem it to be contained.” 

“There is encouraging news on vaccinations, which did not start until March 2021. Now, 21% of the total population is fully vaccinated, and the pace is running at over 20,000 second doses per day (roughly 0.4% of the population).”

“For now, we see developments as NZD-positive.”