NZD/USD: Test of 0.6700 is possible - Westpac

Sandeep Kanihama FXStreet Contributor

NZD/USD retains downward momentum, this week helped by the resumption of US-China trade war headlines and a test of 0.6700 is possible, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“That said, it’s hard to get too bearish in the near term, since CPI data should show a sharp rebound in inflation. In addition, speculator positioning (CFTC) is the third shortest on record. These two factors argue for 0.6700 to hold over the next week or two.”

“Over the next few months, though, we remain negative, and expect 0.6700 to break. The stronger USD, unattractive NZ-US yield spreads, and slower NZ economy, should all help to push NZD/USD lower this year.”

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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