NZD/USD is due for a rebound - Westpac
In view of Imre Speizer, Research Analyst at Westpac, NZD/USD is due a rebound, and we may be seeing the start of that.
“Technical reversal signals, overdone NZ political concerns, and a faltering USD all suggest potential for a move to at least 0.6980 during the week ahead.”
“Multi-month, though, our view rests largely on NZ-US interest rate spread shrinkage persisting into next year.”
“We can add to that local developments which are likely to push inflation slightly lower next year (new govt. policies slowing housing and migration).”
“If that proves correct, we should see NZD/USD below 0.67 multi-month.”