Flash: NZD/USD could plunge towards 0.7200 – Westpac

FXstreet.com (New York) - According to the Westpac Strategy Team, “The long-awaited unwind of extremely long speculative NZD/USD positioning has further to run, however we watch out for a possible temporary boost from the RBNZ this week – a break below 0.7800 would target 0.7200.”

Meanwhile, “the 2-year NZ swap rates should remain side the recent range of 2.90%-3.03%, while 10yr swap rates should remain inside the recent range of 4.00%-4.18%. As for the NZ curve, the steepening trend since May looks to remain intact.” the team adds.