Flash: NZD/USD has chance of a break above 0.8675 - Westpac

FXstreet.com (Barcelona) - The Fed shocked markets by not tapering QE, which has led to many banking institutions to turn very bearish on the US Dollar short term, one of them being Westpac, with Imre Speizer, FX Strategit at the Bank, expecting NZD/USD to reach 0.8600, with a chance of a break above 0.8675.

The decision by the Fed not to taper, according to Speizer, "should keep the US dollar under downward pressure for the month ahead at least, possibly until December", adding "That is because absent any support for the US dollar, the exchange rate is now free to express NZ’s improving fundamentals" Speizer thinks any pullbacks on NZD/USD should be corrective in nature and be limited to 0.8165.