Westpac NZ have updated their 1 to 3 month NZD/USD outlook.
In their morning note the bank argues:
- Stretched technical and stretched long positioning argue for a decent downward correction
- But until the broad US dollar starts to recover from its seven-month old decline, the NZD can remain elevated
- Eventually if the Fed's normalisation cycle pushes US interest rates and the US dollar higher, NZD/USD could fall to 0.6800 by year end
