NZD/USD: Potential to match the 2016 high of 0.7485 - Westpac

Sandeep Kanihama FXStreet Contributor

Whilst technically stretched, there’s more life left in NZD/ USD and there’s potential to match the 2016 high of 0.7485, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“NZD/USD’s two-month old rally remains mainly driven by the falling US dollar. However that rally is technically stretched, and speculators are as long as they were in 2014, warning of a decent correction sometime in the next few weeks.”

“The data highlight this week will be the Q2 CPI release on Tue. We estimate it slipped from 2.2% yoy to 1.8% yoy (1.0% qoq to 0.1% qoq). Also watched by the market will be the GDT dairy auction (Tue). Migration, services PMI are also on the slate.”

“Three months ahead: Our medium term outlook for NZD/USD is mainly dependant on the outlook for the US dollar. A rebound in the US dollar by year end could drag NZD/USD back to the 0.69 area. However, US fundamental developments (economic and political) are not promising.”

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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