NZD/USD: Neutral bias for the week ahead - Westpac

Imre Speizer, Research Analyst at Westpac, suggests that they adopt a neutral bias for NZD/USD for the week ahead, with 0.6900 as a starting point.

Key Quotes

“The currency is conflicted by a possibly resurgent US dollar on one hand; and strong NZ fundamentals, combined with extreme short NZD positioning, on the other. During the past week we have seen upside surprises from CPI data, labour data, and dairy prices.”

“Absent a stronger US dollar, we would not hesitate in calling NZD/USD higher for the weeks ahead. However, should the US dollar recover, we would target 0.6800 multi-week.”