NZD/USD: Scope to reach the 0.71 during the next two days – Westpac

FXStreet Insights Team FXStreet

In the view of economists at Westpac, Friday’s sharp reversal indicates potential for 0.7100 to be tested during the next day or two. Nonetheless, at the time of writing, NZD/USD fails to extend Friday’s corrective pullback as the kiwi takes a U-turn from the short-term key resistance line towards the 0.7000, down 0.08% around 0.7023.

Fundamentals support 0.74 NZD/USD year-end forecast

“Friday’s sharp reversal reduces the risk of a break below 0.6930, instead flipping near-term risks to the upside, with potential for 0.7100 to be tested during the next day or two.”

“Multi-month we remain bullish: the NZ economy is expected to remain buoyant over the remainder of this year, the RBNZ has signalled rate hikes, NZ-US yield spreads have resumed the trend rise, and commodity prices should rise further. These fundamentals should provide support for NZD/USD, our year-end forecast 0.74.”

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FXStreet Insights Team

FXStreet

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