May 05, 2022 - 04:36 PM 254 views
As per the economists at Westpac report, "Kiwi’s one-month
old decline movement can be prolonged up to 0.6375 versus a strong US
dollar." "Moverover, the NZD/USD currency pair watches a recovery of
above 0.70 index points in the second half of the year.”
If the US dollar gets immense support from the Fed’s tightening
cycle, then the NZD/USD pair's negative momentum will extend further into
April. And, the next technical target remains at 0.6375.
The NZ-US pair yield spreads are perhaps not supportive till the
end of this year or probably at the beginning of the year. The RBNZ's pricing
is significantly more overshooting than the Fed's. "
We maintain a bullish multi-month outlook with a target of 0.70 in H2. In the latter half of this year, Fed prices may begin to stabilize.
NZ commodities are likely to become the NZD's main driver. Prices
set by the Federal Reserve (Fed) may change. As a result, the pair could move
closer to parity.