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NZD/USD might test 0.7175 this week – Westpac

FXStreet (Barcelona) - Imre Speizer of Westpac, shares the forecast for NZD/USD and notes that USD strength has been the prime driver for the kiwi.

Key Quotes

“This week: NZD/USD remains subdued by broad US dollar strength (in turn driven by looming US tightening vs ECB and BOJ easing).”

“The FOMC on Wed will be the main event this week for near-term direction. NZ GDP (Thu) will be watched but of secondary importance. We expect 0.7175 to be tested.”

“Multi-month: Lower to 0.71-, with the RBNZ signalling it’s on hold for the next two years, while the Fed is due to tighten by September.”

“In addition, we expect NZ economic data for Q1 and Q2 to be soft.”

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