NZD: 0.6850 levels to be tested - Westpac

Imre Speizer, Research Analyst at Westpac, points out that the NZD was the top performing G10 currency over the past month (actually since early July) by a large margin, which Westpac attribute to a solid economic data pulse, RBNZ shift from dovish to neutral, and extremely short positioning.

Key Quotes

“The good economic news is likely to persist over the next month, as housing has been temporarily lifted by lower mortgage rates. That should feed into strong consumption data, and possibly the Q3 GDP release in Dec.”

“We expect 0.6850 to be tested, a break of which would signal a move to 0.6900.”