Westpac predicts that the NZD/USD will continue to fall towards 0.6375.

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."

May 05, 2022 - 04:36 PM 254 views

Westpac predicts that the NZD/USD will continue to fall towards 0.6375.

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© Westpac predicts that the NZD/USD will continue to fall towards 0.6375.

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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.

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