Westpac on the NZD: "Could fall as far as 0.69 by year end"

Westpac on the NZD/USD from their morning note

The bank updated its NZD outlook in the note on August 8, worth a revisit:

• If the RBNZ remains firmly on hold, as we expect, and the US dollar rises on tighter Fed policy, then NZD/USD could fall as far as 0.69 by year end.

The only confounding aspect may be the Reserve Bank of New Zealand not being quite so dovish as the market was expecting in their MPS yesterday (link & others to Governor Wheeler's comments yesterday too, and more):

• RBNZ seen on hold until H2 2018 - UOB Group
• Bank of New Zealand on the RBNZ
• RBNZ'S McDermott says NZD needs to adjust down
• RBNZ's Wheeler: We would like to see a lower NZD
• RBNZ's Wheeler comments now on NZD intervention
• RBNZ Wheeler: Structural factors are weighing in inflation globally
• RBNZ decision and statement - analyst responses coming in
• RBNZ leave cash rate unchanged (as expected)