RBNZ easing combined with Fed tightening should see NZD/USD at 0.69 by year-end - Westpac
|Imre Speizer, Research Analyst at Westpac, notes that the NZD/USD rebounded sharply off a 0.7035 multi-month low, shy of Westpac’s 0.6950 target and Westpac haven’t discarded that multi-week target, but their immediate thoughts are more bullish.
Key Quotes
“At 0.7230 currently, it is at a critical technical juncture. This level represents a bearish neckline which was broken on 4 Oct. Should it be broken again, in an upward direction, then we’d need to start thinking about targets in the 0.74-0.75 area. Should the neckline hold, then our 0.6950 target would be back in play.
The recent bullish developments have been a stalled US dollar, rebound in global risk appetite, higher commodity prices, and basing NZ inflation.
Further ahead, RBNZ easing combined with Fed tightening should see NZD/USD at 0.69 by year-end.”
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