NZD/USD could drop towards 0.6100 over three months – Rabobank

Dhwani Mehta FXStreet

Analysts at Rabobank lean bearish on the NZD/USD pair in the short to medium term, predicting the US dollar to continue drawing safe-haven demand.

Key quotes

“FX volatility has been heightened in recent months and we expect this to continue. “

“We expect the USD to remain well bid on the back of safe haven demand despite speculation that the market may have over-estimated the extent of Fed policy tightening in the coming months.”

“In our view, USD strength is likely to push NZD/USD back towards its recent lows in the 0.61 area on a 1-to-3-month view.”

“We expect USD strength to turn around on a 6-month view allowing NZD/USD to recover to the 0.64 region.”

“We see scope for AUD/NZD to trend higher to 1.12 in the coming months.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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