NZD/USD could retest the recent 0.6680 high - Westpac

According to Imre Speizer, analyst at Westpac, NZD/USD pair could retest the recent 0.6680 high during the week ahead.

Key Quotes

“The main driver recently has been the US dollar, and there’s a risk of a USD fall next week if the FOMC encourages market doves.”

“In addition, we have NZ GDP data next week (five hours after the FOMC), which should show a continuation of NZ’s economic slowdown (see chart), but also not be as weak as the RBNZ has forecast and thus possibly unsettle market pricing for a rate cut in August.”

“NZD/USD’s main negative factor will continue to be US trade tensions which have broadened beyond China.”

“Multi-month, we expect the story of US growth outperformance to persist, lifting the US dollar further, and in turn, pushing NZD/USD towards 0.6400 over the next quarter.”