NZD/USD under downward pressure - Westpac

Imre Speizer, Research Analyst at Westpac, suggests NZD/USD’ remains under downward pressure.

Key Quotes

“There has been some dissipation of the election-related discount, and the USD rally has stalled, but 0.6820 looks vulnerable to a retest as NZ-US interest rate spreads reach 17-year lows.”

“The market highlights from the NZ data calendar during the week ahead are: GDT dairy auction (20 Nov), trade data (24 Nov), ANZ business confidence (30 Nov), and Q3 terms of trade (1 Dec).”

“Three months ahead: Our medium term outlook for NZD/USD remains largely dependent on the outlook for the US dollar. A persistent rebound in the US dollar should drag NZD/USD lower to the 0.67 area by year end.”