NZD/USD: Slightly positive bias this week - Westpac

Imre Speizer, Research Analyst at Westpac, suggests that the NZD/USD bias for the week ahead is slightly positive.

Key Quotes

“The macroeconomic data stream remains supportive (the farmer milk price upgrade last week will lift confidence in that sector), while offshore factors are depressing the US dollar.

Technical momentum has recently flipped to positive, and we target above 0.7400 during the week ahead. Our bullish stance will remain so as long as 0.7255 neckline support holds.

Regarding RBNZ pricing, markets have quickly moved to a 70% chance for November. There’s scope for more, but we doubt it will weigh too much on NZD/USD: witness today’s reaction to the RBNZ’s freshened easing bias.”