NZD/USD retains negative momentum - Westpac

NZD/USD retains negative momentum, and targets a break below 0.7175, suggests Imre Speizer, Research Analyst at Westpac.

Key Quotes

“The main reason for that is the 3% rebound in the US dollar since mid-Feb, helped by a moderately upbeat new Fed chair.”

“The US dollar will continue to be the main driver of NZD/USD. Taking into account that plus the other main drivers of the pair, we estimate fair value is currently at 0.7180.”

“Our multi-month view is that eventually, higher US interest rates will boost the USD, and NZD/USD will fall to 0.69 by mid-2018.”