Weak NZD will comfort RBNZ - Westpac

NZD/USD’s corrective bounce, catalysed by the strong jobs data, is unlikely to push NZD/USD much higher than 0.7000 as this week’s RBNZ MPS should be neutral for markets, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Thereafter, we expect a resumption of the decline which started in July and is mainly a consequence of a stronger US dollar. NZD/USD should retest the 0.6800 area.” 

“While the US dollar outlook is the main medium-term story for NZD/USD, uncertainty regarding the new government’s policies will also remain a headwind for some time.”