NZD/USD targeting 0.7200 this week - Westpac

The stalled US dollar allows NZ’s strong fundamentals (referenced by RBNZ Governor Wheeler) to come to the fore of the NZD/USD market, targeting 0.7200 this week suggests Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Dairy prices are an important medium term influence on the NZD, but only a weak influence short term. Still, the 95% rise in WMP since Feb is significant, resulting so far in an increase in the farmer milk payout from $4.25/kg to $6.00. All else constant, the higher dairy prices should eventually boost the NZD.”

“Technically, there may be some resistance near term at around 0.7200 which is previous trend support. However daily momentum has flipped to positive so the risks are for even higher during the week ahead.”