NZD/USD: Oscillating in a range - Westpac

NZD/USD continues to oscillate inside a 0.7155-0.7440 range as the momentum right now is sideways, although there remains potential for another test of the upside during the weeks ahead, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Global equity market sentiment has been rising lately, as have commodity prices. And today’s NZ inflation data was close to market and RBNZ expectations. Meanwhile, the US dollar remains downtrodden.”

“Eventually, the US dollar should have its day, given an increasing yield spread, but it’s not obvious that will occur during the month ahead. If it occurs by year end, then NZD/USD will fall below 0.70.”