NZD/USD: Scope to reach the 0.71 during the next two days – Westpac
|In the view of economists at Westpac, Friday’s sharp reversal indicates potential for 0.7100 to be tested during the next day or two. Nonetheless, at the time of writing, NZD/USD fails to extend Friday’s corrective pullback as the kiwi takes a U-turn from the short-term key resistance line towards the 0.7000, down 0.08% around 0.7023.
Fundamentals support 0.74 NZD/USD year-end forecast
“Friday’s sharp reversal reduces the risk of a break below 0.6930, instead flipping near-term risks to the upside, with potential for 0.7100 to be tested during the next day or two.”
“Multi-month we remain bullish: the NZ economy is expected to remain buoyant over the remainder of this year, the RBNZ has signalled rate hikes, NZ-US yield spreads have resumed the trend rise, and commodity prices should rise further. These fundamentals should provide support for NZD/USD, our year-end forecast 0.74.”
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