Neutral on NZD/USD for the week ahead - Westpac

Research Team at Westpac, suggests that since the Brexit vote NZD/USD has fluctuated in a 0.7000-0.7300 range and appears to be hostage to the daily gyrations in global sentiment.

Key Quotes

“The macro-economic data flow remains supportive, apart from inflation indicators which remain very weak. However the latter, plus global risks and a well above forecast NZD TWI, should push the RBNZ into an August rate cut. We are thus neutral on NZD/USD for the week ahead.

Technical: Testing the top of the channel trend but otherwise trend and momentum looking supportive.”