NZD/USD: Test of 0.6700 is possible - Westpac

NZD/USD retains downward momentum, this week helped by the resumption of US-China trade war headlines and a test of 0.6700 is possible, according to Imre Speizer, Research Analyst at Westpac.

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“That said, it’s hard to get too bearish in the near term, since CPI data should show a sharp rebound in inflation. In addition, speculator positioning (CFTC) is the third shortest on record. These two factors argue for 0.6700 to hold over the next week or two.”

“Over the next few months, though, we remain negative, and expect 0.6700 to break. The stronger USD, unattractive NZ-US yield spreads, and slower NZ economy, should all help to push NZD/USD lower this year.”