NZD/USD remains in a multi-month downtrend – Westpac

According to Imre Speizer, analyst at Westpac, NZD/USD remains in a multi-month downtrend, and targets 0.6730 next week.

Key Quotes

“Multi-month, we remain bearish, expecting a fall to the 0.6100 area. That said, NZD positioning is getting stretched. The CFTC measure shows speculative types have become extremely short, which means the chances of an upward correction have risen.”

“For now, though, NZ’s lacklustre fundamentals, which will be updated in a forward-looking sense by the surveys next week, should maintain downward pressure on the NZD.”

“Yesterday’s RBNZ OCR Review did not deliver any signals regarding the November meeting. Key swing factors ahead of that decision will be the Q3 jobs data and Q3 inflation expectations.”