NZD should be trading closer to 0.7300 - Westpac

Imre Speizer, Research Analyst at Westpac, suggests that NZD/USD’s rally since the beginning of June remains intact and it should break above 0.7200 during the week ahead.

Key Quotes

“Of course, that depends on the outcome of the UK vote, but assuming a “remain” result, we should be trading closer to 0.7300 during the next few weeks.

NZ’s economic data pulse remains strong, but so too is the NZD which argues for an RBNZ rate cut in August. That should restrain NZD/USD upside beyond 0.7300. A reversal of the NZD rally will require either a global risk-averse shock or a strong US dollar.”