WPAC update their one to three month outlook for the kiwi dollar, NZD/USD specifically
The bank summarise first the USD side
- US dollar has weakened
- US economic data surprises have been mostly negative
On NZD/USD: :
- NZ-US yield spreads are rising, and risk sentiment remains upbeat overall. These factors explain NZD/USD's rise since early March, and momentum in these suggests there is higher to come.
- We target 0.7050 - the mid-2018 high - over the next few weeks.
- By year end, though, we expect to see it lower at 0.6600, if the Fed activates its final hike and the US economy remains strong
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RBNZ to come today, previews:
- AUD, NZD traders - heads up for RBA and RBNZ info due Wednesday
- And: RBNZ expected to leave rates unchanged. What levels to eye.
