NZD/USD targets 0.62 in the near-term – Westpac

By FXStreet FXStreet (Edinburgh) – Imre Speizer, Strategist at Westpac, suggested the pair could grind lower towards 0.6200 in the next few months.

Key Quotes

“Next week’s event risks are skewed to the downside for NZD/USD, although it’s not an easy bet”.

“Arguing for a continuation of this two-week old corrective bounce are very large short NZD positioning, near term undervaluations (NZD/USD has undershot fair value by around 3 cents), and slightly positive n/t technicals”.

“Given all that, we’ll sit on the fence this week. Our one month and beyond outlooks remain negative, though”.

“Apart from the looming Fed tightening, we see NZ economic growth continuing to slow and ultimately requiring more easing than the RBNZ is implying. We thus target 0.6500 in one month and 0.6200 by October”.
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Source:: FX Street