NZD: Guided by the market forces - Westpac

Sandeep Kanihama FXStreet Contributor

Imre Speizer, Research Analyst at Westpac notes that NZD/USD was the worst performing major currency last week which coincides with the latest NZ election poll showing it could be a close race on 23 September.

Key Quotes

“Our fair value model supports the idea that a new factor has popped into the mix to depress the NZD. Accounting for movement in drivers such as commodities and risk sentiment during the past week, NZD/USD has flipped from a slightly overvalued state to 3% below fair value.”

“We maintain our long-held expectation that shrinking NZ-US yield spreads will depress NZD/USD, targeting 0.70 by year end.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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