NZD/USD: Technically oversold - Westpac

NZD/USD fell sharply over the past fortnight, due to a sharp rise in the US dollar and its 4c fall leaves it slightly technically oversold, which means further losses towards 0.6900 during the weeks ahead will probably be at a slower pace, according to Imre Speizer, Reseach Analyst at Westpac.

Key Quotes

“Also weighing on the NZD is long speculator positioning which should be pared given the US dollar/interest rate relationship is being restored.”

“Against that, there’s the risk that the RBNZ’s stance could shift slightly in a hawkish direction next week.”

“All the above leaves us with a cautious bearish bias for the week ahead.”