Concentrated series of events including RBNZ stung NZD-bulls - Westpac

Imre Speizer, Research Analyst at Westpac, suggests that just when it appeared the NZD was heading towards the mid-0.70s, supported by global capital flows and buoyant risk sentiment, a concentrated series of events (mostly RBNZ-related) stung NZD-bulls.

Key Quotes

“The RBNZ announced, and then delivered, an interim economic assessment which “corrected” false market impressions that the RBNZ was reluctant to cut, signalling a move in August. It also announced new housing loan restrictions, and to top it all off Q2 CPI was lower than expected.

NZD/USD’s decline has just broken the 0.7000 head-and-shoulders neckline. If the break is sustained, the implied target of 0.6700 will become the focal point during the weeks ahead.”