NZD/USD: Next upside target located at 0.71 – Westpac

The kiwi is holding steady in the mid-0.70s ahead of key US jobs data. Economists at Westpac highlight a handful of headwinds for the New Zealand dollar and, therefore, expect the pair to reach the 0.71 level next.

Year-end forecast for NZD/USD is 0.74

“Wednesday’s break above its two-week old consolidation range has been sustained, 0.7100 the next upside target.”

“Multi-month, the NZD is supported by the NZ economy’s expected strength over the remainder of this year, the RBNZ’s signalled rate hikes, NZ-US yield spreads, and a positive outlook for NZ commodity prices.”

“Our year-end forecast for NZD/USD is 0.74 (which is coincidentally where our estimate of fair value currently is).”