NZD/USD: three month outlook targets 0.6200 – Westpac

By FXStreet FXStreet (Guatemala) – On a three month outlook, Imre Speizer, analyst at Westpac explained that they expect NZD/USD to remain under downward pressure during the next few months, targeting 0.62. Our main argument is that the Fed should raise US interest rates further this year but markets have priced little in.

Key Quotes:

“The US labour market is looking strong and that should eventually result in wage inflation, in turn causing the Fed to tighten further. In contrast, the RBNZ should retain its easing bias, and markets will increasingly price in further rate cuts in 2016. In addition, low oil prices will act as a headwind for NZ dairy product prices, and thus the NZD.”
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Source:: FX Street