The NZ event calendar next week is headlined by Q1 labour data. Meanwhile, the NZD/USD pair continues to break higher, led by a weaker USD, and economists at Westpac expect the kiwi to reach the 0.7300 level.
Forecasts for the unemployment rate have declined over time
“NZD/USD continues to break higher, 0.7270 to be tested next, en route to 0.7300.”
“We would view any corrective pullbacks to 0.7150 as opportunities to buy for the medium term.”
“Further USD weakness is expected as the Fed remains defiantly accommodative, global growth improves further, and commodity prices continue to rise. With that backdrop, NZD/USD should rise to 0.76 by year-end.”
“Next week’s labour data will be of market interest. Our forecasts for the unemployment rate have been successively surprised since the pandemic started. However, there’s less scope for further improvement over the next few quarters, as a 5% unemployment rate fairly captures the negative output gap resulting from borders remaining closed (to most) over the remainder of 2021.”
