NZD/USD: more upside risk ahead - Westpac

Imre Speizer, analyst at Westpac offering a 1 week outlook noted that the US dollar remained on the back foot, posing upside risks for NZD/USD again this week.

Key Quotes:

"After breaking above a six-month old contracting range last week, NZD/USD has fallen back inside the range and has no obvious directional bias near term. 

However, with the US dollar still on the back foot the risks for NZD/USD remain to the upside, and we see scope for it to run as far as 0.72 during the month ahead. US growth estimates for Q1 have been slashed (to 0.1% yoy by the Atlanta Fed) and markets give a June hike only a 20% chance.

The NZ data calendar remains light this week, none of the releases typically market moving. On Mon we have electronic retail spending and REINZ house sales and prices. Wed sees food prices, and Thu has manufacturing PMI."