NZD/USD: Bullish for the week ahead, targeting 0.7200 - Westpac

Imre Speizer, Research Analysts at Westpac, remains bullish on NZD/USD pair for the week ahead and expect it to target 0.7200.

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.”

“The NZ data calendar this week is is unlikely to ruffle markets. We have Q1 manufacturing (Wed), partial for Q1 GDP which is released on 15 June.”

“Three months ahead: Multi-month, we stick with our bearish outlook, targeting 0.68 by year end. That is contingent on the higher US interest rate and a stronger US dollar trends eventually reasserting themselves.”