NZD/USD: Further weakness in store - Westpac

NZD/USD fell to a two-year low at 0.6688 this week, and is destined for further weakness during the months ahead, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“The NZ economy is slowing, and NZ-US yield spreads continue to make fresh record lows.”

“However during the week ahead, there’s a risk of a corrective rebound. It’s technically stretched, and speculator positioning is extremely short.”

“Moreover, markets may start looking ahead to the Q2 CPI data which will probably reveal a large rebound in headline inflation.”