NZD/USD to target 0.6980 during the week ahead - Westpac

NZD/USD formed a near term bottom over the past six weeks and targets 0.6980 (the early Nov high) during the week ahead, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

 “Near term rationale for a rise include NZD/ USD’s undervaluation, plus speculators’ extreme short positioning.”

“The NZ data calendar during the week ahead doesn’t hold much for markets (Q3 manufacturing activity, REINZ house sales, and manufacturing PMI), but there will be some interest in the HYEFU on Thu.”

“Three months ahead: Our medium term outlook for NZD/USD remains largely dependent on the outlook for the US dollar. A persistent rebound in the US dollar should drag NZD/USD lower to the 0.67 area during the next few months.”