NZD/USD: headed lower to 0.6800 - Westpac

Analysts at Westpac offered an outlook for NZD/USD and levels.

Key Quotes:

"NZD/USD 1 day: The kiwi has failed repeatedly since Nov on probes above 0.72 but seems likely to have another try today given lukewarm USD sentiment. 0.7130 should offer support.

NZD/USD 1-3 month: Lower to 0.6800. The US dollar has had an impressive rise since the US election and has potential to rise further during the months ahead. The Fed’s assertive tightening projections plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar. Against that, the NZ economy is strong and dairy prices have risen, but these forces are subservient to the US dollar’s trend. (21 Dec)."