NZD/USD expected to test 0.62 by end 2015 – Westpac

By FXStreet FXStreet (Edinburgh) – Imre Speizer, Strategist at Westpac, remains of the view that the Kiwi dollar could grind lower towards the 0.62 handle vs. the greenback by year-end.

Key Quotes

“We retain a negative bias for the week, 1 month and 3 months ahead. The 0.6500 level is holding for now, but should eventually give way to 0.6455 next, and then 0.6235 during the next month or two”.

“US dollar strength dominates, but is supplemented by a recent slowdown in NZ economic momentum (notably the first signs of the housing market cooling)”.

“In addition, this week’s dairy auction could see prices fall slightly further. Further out, we expect the RBNZ to cut the OCR to 2.5% at the December meeting. Our year-end target for NZD/USD is 0.62”.
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Source:: FX Street