NZD/USD could retest the recent 0.6680 high - Westpac

Sandeep Kanihama FXStreet Contributor

According to Imre Speizer, analyst at Westpac, NZD/USD pair could retest the recent 0.6680 high during the week ahead.

Key Quotes

“The main driver recently has been the US dollar, and there’s a risk of a USD fall next week if the FOMC encourages market doves.”

“In addition, we have NZ GDP data next week (five hours after the FOMC), which should show a continuation of NZ’s economic slowdown (see chart), but also not be as weak as the RBNZ has forecast and thus possibly unsettle market pricing for a rate cut in August.”

“NZD/USD’s main negative factor will continue to be US trade tensions which have broadened beyond China.”

“Multi-month, we expect the story of US growth outperformance to persist, lifting the US dollar further, and in turn, pushing NZD/USD towards 0.6400 over the next quarter.”

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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