NZD/USD: Bullish with 0.7100- 0.7200 trading range expected - Westpac

Imre Speizer, Research Analyst at Westpac, remains bullish on NZD/USD for the week ahead, expecting a higher 0.7100- 0.7200 trading range.

Key Quotes

“The US dollar continues to soften, NZ fundamentals remain strong, global risk appetite remains elevated, and speculators’ short NZD positions are being unwound. In addition, NZD/USD is around 5% undervalued, not fully reflecting a strong commodities performance.”

“Multi-month, though, we stick with our bearish outlook, targeting 0.68 by year end. However, that’s contingent on the US dollar resuming the rally we saw in 2016.”