NZD/USD: Positive bias for the week ahead - Westpac

Imre Speizer, Research Analyst at Westpac, retains a positive bias for the week ahead, based on NZD/USD’s vulnerability to a short squeeze, and positive technical momentum. We are looking for a rise to 0.6725.

Key Quotes

“With the RBNZ OCR Review (which didn’t produce the anticipated dovish surprise) out of the way, there’s nothing in the NZ event calendar of major note until the CPI release on 16 Oct. Markets are likely to continue pricing a 30% chance of a cut over the next year, barring an offshore-sourced shock.”

“Medium term, we remain bearish, based on our Fed/US economy-based expectation that the USD will rise further, and we continue to target 0.64 by year end.”