NZD/USD: Reversal lower has stalled - Westpac

NZD/USD’s reversal lower has stalled, partly due to the US dollar struggling to make headway, explains Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Still, speculative positioning appears to have peaked, and the RBNZ has ramped up its currency warnings, leaving the 0.7250 area (recent lows) vulnerable.”

“This week’s data releases include manufacturing and services PMIs, food prices, retail sales volume, consumer confidence and PPI. The GDT dairy auction (Tue) is tipped by futures to rise.”

“Three months ahead: Our medium term outlook for NZD/USD is largely dependant on the outlook for the US dollar. A persistent rebound in the US dollar by year end is needed to pull NZD/ USD back to the 0.70 area.”