11 Feb 2016
NZD/USD: mid-year target remains at 0.62 – Westpac
Strategist at Westpac Imre Speizer has reiterated the bearish picture for the Kiwi dollar, expected to slip towards 0.62 by mid-year.
Key Quotes
“NZD/USD retains positive momentum within its week-old range of 0.6560-0.7650, but much will depend on whether the US dollar’s slump extends”.
“Multi-month, we expect NZ’s infl ation outlook to remain low which should eventually require a lower OCR (we forecast 2.0% this year)”.
“Lower interest rate diff erentials, plus weak commodity prices, should drag NZD/USD down to 0.62 by mid-year”.
Key Quotes
“NZD/USD retains positive momentum within its week-old range of 0.6560-0.7650, but much will depend on whether the US dollar’s slump extends”.
“Multi-month, we expect NZ’s infl ation outlook to remain low which should eventually require a lower OCR (we forecast 2.0% this year)”.
“Lower interest rate diff erentials, plus weak commodity prices, should drag NZD/USD down to 0.62 by mid-year”.