Westpac expect NZD/USD to resume downward trend, target 0.62 or lower by year end

Westpac on the NZD, this is via LiveSquawk

We expect NZD/USD to resume its downward trend during the next few months

• Targeting 0.62 or lower by year end
• The US dollar outlook is positive while NZ's economy is losing steam
• There is scope for a near term bounce if large short NZD positions are pared

Medium term (multi-month) outlook for NZD/USD:

• Remains negative for much the same reasons - USD strength driven by the Fed tightening combined with a NZ economic slowdown
• Target 0.62 by October this year
• Should this corrective bounce extend, we would see that as an opportunity to reinstate the short NZD/USD position we held since early June and closed this week