NZD/USD has broken key support levels, with the next level at 0.6945, below which would mark an important break lower and change of trend. But over the remainder of the year, economists at Westpac continue to expect global risk sentiment and commodity prices to remain elevated – underpinning the kiwi.
Scope for a move to 0.6945
“Key support levels have been broken, targeting 0.6945 next (the March low). The Fed’s hawkish surprise has easily dominated the NZ GDP data surprise, so we remain bearish for the week ahead.”
“Multi-month, we’ll stick with a bullish outlook, unless 0.6945 gives way.”
The NZ economy is expected to remain buoyant over the remainder of this year, the RBNZ has signalled rate hikes, NZ-US yield spreads have resumed the trend rise, and commodity prices should rise further. We forecast NZD/USD to 0.75 by year-end.”