NZD/USD momentum remains positive - Westpac

After rising 4c since Nov, NZD/USD is likely to take a breather over the next day or two, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Following that, a retest of 0.7200 is possible, and if successful, an extension towards 0.7400. Helping fuel the rally is buoyant global risk appetite and near record short positioning among futures speculators.”

“The NZ data calendar highlight in Jan is Q4 CPI (25th), which we expect to rise slightly from 1.9% to 2.0% (yoy). There’s also a GDT dairy auction for which futures are pricing a 4% rise in WMP.”

“Three months ahead: Our medium term outlook for NZD/USD remains largely dependent on the outlook for the US dollar. A sustained rebound in the US dollar should drag NZD/USD lower to the 0.67 area during the next quarter.”