RBNZ easing combined with Fed tightening should see NZD/USD at 0.69 by year-end - Westpac

Sandeep Kanihama FXStreet Contributor

Imre Speizer, Research Analyst at Westpac, notes that the NZD/USD rebounded sharply off a 0.7035 multi-month low, shy of Westpac’s 0.6950 target and Westpac haven’t discarded that multi-week target, but their immediate thoughts are more bullish.

Key Quotes

“At 0.7230 currently, it is at a critical technical juncture. This level represents a bearish neckline which was broken on 4 Oct. Should it be broken again, in an upward direction, then we’d need to start thinking about targets in the 0.74-0.75 area. Should the neckline hold, then our 0.6950 target would be back in play.

The recent bullish developments have been a stalled US dollar, rebound in global risk appetite, higher commodity prices, and basing NZ inflation.

Further ahead, RBNZ easing combined with Fed tightening should see NZD/USD at 0.69 by year-end.”

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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