NZD/USD to move toward 0.64 by year-end – Lloyds

By FXStreet Analysts from Lloyds Bank expect the NZD/USD pair to move toward 0.64 by the end of the year amid monetary policy divergence.

Key Quotes:

“NZD/USD rose to an 11-month high in mid-April of 0.7054, as expectations of a near-term rate hike by the US Federal Reserve continued to recede. However, since then, slower growth prospects in Australia (New Zealand’s largest trading partner) and renewed concerns over the domestic dairy sector, with milk prices still under pressure, have weighed on the NZD.”

“In the short term, we expect NZD/USD to move towards the top of its range – around 0.70. But given our central expectation of two interest rate hikes from the Federal Reserve this year, and the RBNZ likely to maintain an easing bias, especially if milk prices remain subdued,we forecast NZD/USD to move towards 0.64, by end-2016.”
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Source:: FX Street