NZD/USD: Bullish with potential for a retest of 0.7300 - Westpac

Imre Speizer, Analyst at Westpac, explains that they remain bullish on NZD/USD pair for the week ahead, with potential for a retest of 0.7300 if the US dollar’s weakness persists.

Key Quotes

“The basing (for now) of oil prices and the resumption of US dollar weakness have given the NZD another lift. In addition, the RBNZ was less dovish than feared last week, causing a fresh wave of buying. Indeed, speculators have increased longs to a three-year high.”

“Data this week is second-tier for markets. We get May trade balance (Tue), ANZ business confidence (Thu), and May building permits (Fri).”

“Three months ahead: Our year-end target of 0.68 is contingent on the US interest rate and US dollar uptrends, seen in 2016, resuming.”