NZD/USD is likely to be mainly a reflection of US dollar behaviour - Westpac

Imre Speizer, Research Analyst at Westpac, suggests that with the RBNZ well and truly sidelined (today’s OCR Review Statement clearly indicated that) and economic news minor until the mid-April CPI release, NZD/USD is likely to be mainly a reflection of US dollar behaviour.

Key Quotes

“If the unwind of long-USD positions persists, then NZD/USD should continue higher during the weeks ahead, into the 0.7150-0.7300 range.”

“Multi-month, though, we expect a shrinking NZ-US interest rate spread to weigh on NZD/USD, targeting 0.6900.”