NZD/USD Eyes 0.65 in Q3 – Westpac
Strategist Imre Speizer at Westpac sees the pair slipping towards the 0.65 area in the next months.
“NZD/USD continues to gyrate within an ascending range, although it has lost momentum during the past week and could slip to 0.6800 during the week ahead”.
“That’s more a story of a US dollar rebound from an extreme low, since the NZ data flow has continued to describe an economy in decent shape”.
“We continue to expect an RBNZ rate cut in June, but market pricing for such (60% chance) is unlikely to change much until we see inflation expectations surveys in two weeks time. We target 0.6500 in Q3 assuming the Fed does hike this year”.