NZD/USD: Election continues to weigh - Westpac

According to Imre Speizer, Research Analyst at Westpac, the NZ election continues to weigh on NZD/USD as the negative reaction to the governing coalition has persisted, and there is a risk it runs even further.

Key Quotes

“If so, then 0.6820, which held in May and last week, could give way. The data highlight this week will be the Q3 labour data. We expect a decent report, showing unemployment continuing to trend lower, from 4.8% to 4.7%, with a pickup in wage inflation too.”

“Three months ahead: Our medium term outlook for NZD/USD is largely dependent on the outlook for the US dollar. A persistent rebound in the US dollar could drag NZD/USD lower to the 0.67 area by year end.”