NZD/USD to suffer further falls to the 0.6945 mark – Westpac

Global factors, plus an unwinding of pricing for a 50bp RBNZ hike, have weighed on NZD/USD. In the view of economists at Westpac, the kiwi has potential for further slippage to 0.6945.

AUD/NZD has scope to dip to the 1.0200/50 area

“NZD/USD remains in downward corrective mode, the next downside targets being 0.6990 and 0.6945.”

“Weighing on the NZD recently have been a risk-averse global backdrop, a stronger US dollar reflecting a normalizing Fed, and an expectation the first RBNZ rate hike will be 25bp rather than 50bp.” 

“Against the AUD, the NZD has scope to outperform slightly further on yield spreads, taking the cross to the 1.0200/50 area.”