NZD/USD heading for 0.7200 - Westpac

Imre Speizer, Research Analyst at Westpac, suggests that NZD/USD finally broke out of its contracting range which had formed since Sep 2015 with bullish implications.

Key Quotes

“Assuming it remains above 0.6875, we target 0.7200 during the next few weeks. NZD/USD strength this year derives mainly from a weaker US dollar, and a somewhat related rise in risk sentiment.

NZ fundamentals, if anything, continue to argue for a lower NZD/USD; NZ-US swap spreads and NZ commodity prices both falling this year. However, US dollar behaviour dominates for now.”