NZD/USD forecast update, 0.68 by year-end if sentiment stabilizes

Westpac updates its outlook for the New Zealand dollar:

  • Potential for further weakness over the coming month, 0.6200 likely to be tested. If that breaks, we would then target the 0.6000 area, which was an area of ​​high congestion at the start of 2020.
  • The main drivers of NZD/USD at the moment are global risk sentiment (represented by stock prices, for example) and the US dollar (in turn influenced by both risk sentiment and currency spreads). yield). Over the coming month, the direction of risk sentiment will be key.
  • But much further ahead, by the end of the year, assuming sentiment stabilizes, it is possible for the NZD to rebound towards 0.68. By then, the Fed story should be fully priced, meaning yield spreads will no longer weigh on NZD/USD as the spotlight increasingly shines on rising commodity prices. New Zealand premieres.

NZD/USD daily candles:

cnbctv18-forexlive-benzinga -Sp

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