NZD/USD: Negative bias for the week ahead - Westpac

Imre Speizer, Research Analyst at Westpac, suggests that they are reverting to a negative bias for the week ahead as far as NZD/USD is concerned.

Key Quotes

“NZD/USD finally broke below the 0.7130-0.7245 range which had persisted since early Feb, and now targets 0.7000 multi-week. The stronger USD will dominate, the next major NZ events not until mid-March when we get Q4 GDP, and then RBNZ.”

“NZ data releases remain second-tier next week. We will have building permits (Mon), Q4 manufacturing activity (Wed), and electronic retail spending (Fri). RBNZ Governor Wheeler speaks again on Tue but it’s private.”

“The first GDT dairy auction of the month will be on Tue night, with whole milk powder futures pricing a 6% fall to the $3000 area. Such an outcome would be fundamentally unsurprising given supply both domestically and internationally has started to recover.”