NZD/USD technically remains in a bearish state - Westpac

Imre Speizer, notes that the NZD/USD remains in a bearish state according to technicals, while macro and valuation indicators suggest a bullish stance.

Key Quotes                           

“We await resolution, which is more likely to come from US than NZ events.”

“The positive NZ macro backdrop is widely acknowledged. Valuations are interesting, though, with weekly fair value currently 4c higher than spot.”

“Technically, it needs to remain below 0.7080 (H&S neckline) for the bearish case to continue to hold.”