NZD/USD aims to 0.68 in the medium term – Danske Bank
|Analyst at Danske Bank Minna Kuusisto expects NZD/USD to drop to the 0.68 region in a 6-month’s view.
Key Quotes
“Led by the USD developments, NZD sank to a six-month low in December. However, in January, the cross has recovered 2%”.
“In the short term, we see broader USD developments and market expectations of changes in US economic policy and growth as key to the pair”.
“In the longer term, we expect NZD/USD to continue its gradual drift lower. Even though the markets could speculate on the RBNZ hiking rates towards year-end, we still see relative monetary policies supporting the USD in the short term”.
“We keep our forecast unchanged and expect the NZD to bottom in 3-6M before heading slightly higher towards the year-end. Our 6M forecast is 0.68 and 12M target 0.70”.
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