NZD/USD: Stuck between 0.7200 and 0.7350 - Westpac

NZD/USD remains stuck between 0.7200 and 0.7350, with more of the same expected during the week ahead, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“The NZ election produced no clear winner, and a period of coalition formation behind the scenes will now ensue. The resultant uncertainty will weigh on the NZD.”

“This week’s NZ event highlight will be the RBNZ OCR Review on Thu, which should repeat the neutral policy guidance, but may tweak the overall narrative slightly. There’s also trade (Tue), ANZ business confidence (Tue) and building permits (Fri) to watch.”

“Three months ahead: Our medium term outlook for NZD/USD is largely dependent on the outlook for the US dollar. A persistent rebound in the US dollar by year end is needed to pull NZD/ USD back to the 0.70 area.”