Courtesy of our friends at Livesquawk here's the latest thoughts on NZD from Westpac
Week ahead: We retain a neutral bias for the week ahead, the pair locked
in a 0.6430-0.6600 range. The GDT dairy auction could give the NZD a
temporary boost since futures markets are predicting a 9% bounce in WMP
prices, but an ECB easing and US dollar supportive events should cap any
rallies.
NZ data is minor for markets. Building permits and
business confidence (Mon), terms of trade and QV house prices (Tue), and
building work (Fri).
3 months ahead: By year-end, we see the NZ
economy slowing, the RBNZ easing in December, and the Fed tightening.
We target 0.62. The main risk to this bearish view is the Fed delays its
tightening cycle beyond December. A secondary risk is the RBNZ doesn't
cut in December.
1 year ahead: Our 1 year ahead forecast is 0.62, based partly on the OCR being cut to 2.0%.
NZDUSD currently 0.6547 AUDNZD 1.0982
