NZD/USD to target 0.7030 during the week ahead - Westpac

Imre Speizer, Research Analyst at Westpac, notes that earlier this week NZD/USD broke below its four-month old sideways range, with further bearish implications and they target 0.7030 during the week ahead – that’s a 62% retracement of the Nov-Jan rally as well as a minor peak in Dec.

Key Quotes

“By year end we expect 0.68.”

“The main reason for the sudden breakdown is that the US dollar has risen sharply (probably in response to higher US interest rates).”

“But the NZD has underperformed all other major currencies during the past week too, with no fresh fundamental news out. We’d argue speculators got overly long and are now unwinding.”