NZD/USD: Stabilization coming – Westpac

Sandeep Kanihama FXStreet Contributor

NZD/USD has stabilised after falling 10% since August (much of that caused by the election event) and looks around 5% undervalued according to Westpac’s fair value models, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Speculative positioning is quite short, so that even if the USD does continue to rise, the NZD/USD response may be muted in the near term.”

“Medium-term though, our view remains negative, resting largely on NZ-US interest rate spread shrinkage persisting into next year.”

“If that proves correct, we should see NZD/USD below 0.67 multi-month.”

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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