NZD: Downtrend likely to remain intact - Westpac

Imre Speizer, Research Analyst at Westpac, explains that the NZD/USD’s trend decline stalled last week, as expected, bouncing off 0.6545 to test a key technical level at 0.6720.

Key Quotes

“As long as it remains below this level, though, the downtrend and our year-end target of 0.64 by year end remain intact. Much higher, though, and that view would be questioned.”

“Influential factors are currently mixed: fair value (0.70) and positioning (extremely short NZD) argue for higher, while a dovish RBNZ and the trend rise in USD argue for lower.”