NZD/USD: Break below 0.700 signals a much deeper correction to 0.6800 – Westpac

The further breach of 0.7000 leaves NZD/USD at risk of sliding towards 0.6800. Longer term, though, economists at Westpac forecast the kiwi at 0.7500 by mid-year.

Key quotes
“The downward correction could extend as far as 0.6800 over the next few weeks. Beyond that, we retain a cautious bullish stance.”

“We continue to expect global risk sentiment to remain elevated; supported by unprecedented central bank and government stimulus, as well as vaccine developments. Commodity currencies should strengthen in that environment.”

“Interim resistance is likely between 0.7010-40.”

“NZD/USD targets 0.7500 by June.”