NZD/USD: Supported by the NZ data - Westpac

Imre Speizer, research analyst at Westpac, suggests that the NZD/USD continues to benefit from a string of positive NZ data surprises lately, as well as speculative positioning which remains extremely short according to the CFTC.

Key Quotes

“The next upside target is 0.7050.”

“That said, the pace of NZ data surprises is unlikely to be maintained over the next few months. That’s evident from the data surprise model, as well as being the view of our economists who forecast slightly less rosy GDP, CPI, and jobs data for Q4.”

“We expect a reversal in NZD/USD by Q1 2019, aided by a stronger USD, and forecast 0.6500.”