NZD/USD: Cautiously bullish for the week ahead - Westpac

Imre Speizer, Research Analyst at Westpac, suggests that they are cautiously bullish on NZD/USD for the week ahead, seeing potential for a retest of 0.7320 (the 14 June peak), but also noting it is getting technically stretched.

Key Quotes

“The main driver for such a retest would be continuing weakness in the US dollar. NZ fundamental news has, if anything, cooled slightly of late (dairy price growth, house price growth, and construction activity - confirmed by latest Q1 GDP data).”

“Multi-month, if the US dollar resumes 2016’s trend rise, NZD/USD will be closer to 0.68 by year end.”