NZD/USD should remain capped by 0.7060 – Westpac

NZD/USD should remain capped by 0.7060 during the week ahead, and should be closer to 0.6900 in a month, suggests Imre Speizer, Research Analyst at Westpac.

Key Quotes

“The rationale for this bearish view is a firmer USD, supported by the Fed’s latest update, and a cooling NZ economy, which should be confirmed by next week’s GDP release.”

“In addition to the above, the erosion of the NZD’s yield advantage over the USD should weigh on NZD/USD for some time. Our year end target is 0.67.”