According to Westpac economists, Friday’s rapid reversal suggests that 0.7100 could be tested in the following day or two. Nonetheless, as of this writing, the NZD/USD pair has failed to extend Friday’s corrective decline, with the kiwi making a U-turn from the short-term critical resistance line towards 0.7000, down 0.08 percent “”.7023″ The rapid reversal on Friday lessens the likelihood of a break below 0.6930, instead shifting near-term risks to the upside, with 0.7100 being tested within the next day or two.”
“The NZ economy is likely to stay strong for the rest of the year, the RBNZ has signaled rate hikes, NZ-US yield spreads have resumed their upward trend, and commodity prices should continue to grow. The NZD/USD pair should benefit from these fundamentals, with our year-end projection of 0.74.”/n
