NZD/USD: Next major upside target is 0.7740 - Westpac

Imre Speizer, Research Analyst at Westpac, suggests that NZD/USD has had a stunning 10% rise since mid-May, but most of the majors have also had strong performances against the USD and as long as the USD keeps sliding, NZD/USD will rise, regardless of what local fundamentals do (within reason).

Key Quotes

“That said, commodity prices are supportive: witness Fonterra’s milk payout upgrade this week.”

“The next major upside target is 0.7740 (Apr 2015 peak). Stretched technicals and positioning warn of a reversal but say nothing about timing.”

“A reversal to 0.68 by year end requires the US dollar to stage a meaningful recovery.”