NZD/USD to take cues from USD and election polls – Westpac

Imre Speizer, Research Analyst at Westpac, points out that NZD/USD has managed to stay above the technically key 0.7200, thanks to the weak US dollar.

Key Quotes

“Apart from the US dollar, the other major influence during the week ahead will be election polls, plus the election result on 23 Sep.”

“Since 17 Aug, when the first poll showing Labour’s resurgence was released, the NZD has underperformed all major currencies apart from the yen. It has also underperformed in fair value models since that date.”

“It’s not obvious from polls which party will win the election. Suffice to say uncertainty until then should manifest as a negative for the NZD.”