NZD/USD to climb towards 0.74 by year-end – Westpac

While NZD/USD may test 0.6800 in near-term, economists at Westpac expect the kiwi to surge higher towards 0.74 assuming a short NZ lockdown and a return to the economic recovery trend.

NZD/USD to challenge the 0.68 level

“Tuesday’s break lower has been sustained, a test of 0.6800 likely near-term.”

“Multi-month, we remain bullish: the NZ economy is expected to remain buoyant over the remainder of this year (assuming August’s covid lockdown is short), the RBNZ has signalled rate hikes, NZ-US yield spreads are rising, and commodity prices have a positive outlook. These fundamentals should provide support for NZD/USD, our year-end forecast 0.74.”