NZD/USD: Oversold, set for gains in the second half of the year – CIBC

NZD/USD is down by more than 9% sine the beginning of April. With the pair looking increasingly oversold, economists at CIBC Capital Markets expect the kiwi to enjoy gains in the second half of the yaer.

NZD/USD to soon find a base

“Recognition of the RBNZ not being as hawkish as priced should limit over-tightening concerns.”

“With the NZD looking increasingly oversold we would look for the NZD to soon find something of a base as shorts are soon set to reach March extremes.”