NZD/USD remains a ‘sell on rallies’ – Westpac

By FXStreet FXStreet (Edinburgh) – Imre Speizer, Strategist at Westpac, has suggested that occasional bullish attempts in the pair represent selling opportunities.

Key Quotes

“NZD/USD has probed under the 0.6400 level, with a daily close below likely to take it as far as 0.6235 during the weeks ahead”.

“Admittedly it’s becoming oversold, but we would view any bounces as corrective and opportunities to establish shorts”.

“January’s risk averse mood may or may not fade, but the absence of NZ inflation is an enduring theme which will keep the pressure on the RBNZ to consider easing”.

“Add to that the weak outlook for NZ commodity prices (dairy supply high, demand low) and our bearish outlook for NZD/ USD remains intact”.
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Source:: FX Street