NZD/USD should grind towards 0.7200 this week - Westpac

Imre Speizer, Research Analyst at Westpac, suggests that the NZD/USD should grind towards 0.7200 this week if the US dollar’s dollar’s recent decline extends further.

Key Quotes

“In addition, NZ economic data continues to improve (Chart 3), most recently evidenced by the GDT dairy auction which saw prices rise 4% as was predicted by futures pricing (yesterday Chart 3a). Economic data this week is low key, but there is a speech by RBNZ Governor Wheeler on the economy, plus the half year fiscal update from the Treasury (both Thu).”

“3 months: We expect the US dollar to eventually resume its uptrend as the US economy improves further and US interest rates rise. That should eventually cause NZD/USD to decline to 0.70 or lower.”