NZD/USD to target 0.6500 in Q3 - Westpac

Imre Speizer, Research Analyst at Westpac, notes that the NZD/USD retains negative momentum, targeting sub-0.6700 during the week ahead.

Key Quotes

“That is mainly a story of markets repricing the Fed, particularly following the hawkish FOMC minutes. Markets have also repriced the RBNZ in a hawkish direction, such that a June cut is now seen as only a 40% chance. Should the RBNZ cut on 9 June, as we expect, markets will be surprised and NZD/USD should fall. We continue to target 0.6500 in Q3 assuming the RBNZ and Fed diverge as we expect.”