NZD: Lingering geopolitical uncertainty should cap the upside at 0.7300 - Westpac

Sandeep Kanihama FXStreet Contributor

Imre Speizer, Research Analyst at Westpac, notes that the NZD/USD lost 3c in response to the Brexit vote but has recouped about half the loss at 0.7120.

Key Quotes

“Brexit stress appears to be fading and should push the pair into the 0.7150-0.7190 area during the next few days.

The next big event for NZ fundamentals will be the Q2 CPI release on 18 July. Until then, the NZD will remain at the mercy of global developments (Brexit, US data, US & AU elections).

Attractive NZ interest rate differentials and a strong NZ economy should continue to entice capital flows into the NZD. Against that, lingering geopolitical uncertainty should cap the upside at 0.7300.”

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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