NZD/USD: Flirting with a break below the 0.7175-0.7440 range - Westpac

Imre Speizer, Research Analyst at Westpac, explains that NZD/USD has been flirting with a break below the 0.7175-0.7440 range but stymied by a subdued USD and should a sustained break occur, we’d be targeting 0.7000 multi-week.

Key Quotes

“The “new look” RBNZ will be a factor for markets to watch during the month ahead. Not only will the target be different – at a minimum, a labour target will be added to the inflation target; but the 2% midpoint focus could be removed, leaving the 1%-3% band – but we’ll also have a new governor and possible a different decision-making and governance structure. We see the risks from the PTA change being dovishly skewed.”