NZD/USD: Potential for a rebound to the 0.7000- 0.7050 area – Westpac

NZD/USD has fallen over 5 cents since mid-April and is now slightly stretched from a technical perspective and there is potential for a rebound to the 0.7000- 0.7050 area during the week ahead, if the US dollar stalls, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Market pricing for the RBNZ has now stabilised, and we don’t expect any ground-breaking economic news during the week ahead. Against that, there is still long futures speculator positioning to be cleared.”

“Longer term, we remain comfortable with our year-end forecast of 0.68, which is based on expected further rises in US interest rates.”

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