This quickie via Westpac on what to watch to help the NZ dollar higher next week. WPAC says offshore developments to be more impactful than domestic.
(bolding mine)
- NZD/USD has been propped up over the past month mostly by a weaker US dollar.
- There's plenty of US event risk over the next few weeks to extend or reverse that story, such that the main drivers for NZD/USD are unlikely to be domestic.
- nothing major in the NZ calendar over the next month apart from Q2 CPI on the 16th
If offshore developments keep sentiment on equity markets steady and do not provide a case for a stronger USD the kiwi can benefit in the coming week. Further out though WPAC are expecting NZD/USD to 0.65 (one to three month horizon)
More:
RBNZ (7 August) will be the next big event for NZ markets
- most expect a rate cut
- The case for such was strengthened by this week's NZIER business confidence survey (fell to a decade low) and indicated the growth slowdown is deeper and more prolonged than we or the RBNZ had expected
