NZD/USD: Fundamental backdrop is supportive for a test of 0.6750 – Westpac
|NZD/USD remains supported by global risk sentiment, weaker USD, relative New Zealand’s economic and COVID-19 outperformance and higher NZ commodity prices. Analysts at Westpac stay biased slightly higher on the kiwi, targeting 0.6750.
Key quotes
“NZD/USD’s break above 0.6600 has been maintained but it hasn’t made much additional headway and thus remains only slightly biased to the upside. Multi-month, though, we remain bullish, targeting 0.6750.”
“The fundamental backdrop remains supportive: trend decline in the USD, global demand for risky assets, unprecedented fiscal and central bank stimulus, NZ economic (and COVID-19 management) outperformance, and China’s recovery boosting demand for NZ commodities.”
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