NZD/USD gains appear capped near 0.7300 – Westpac

Imre Speizer, Strategist at Westpac, believes the pair’s upside could be limited around the 0.7300 handle.

Key Quotes

“NZD/USD lost 3c in response to the Brexit vote but has recouped about half the loss at 0.7120. Brexit stress appears to be fading and should push the pair into the 0.7150-0.7190 area during the next few days”.

“The next big event for NZ fundamentals will be the Q2 CPI release on 18 July. Until then, the NZD will remain at the mercy of global developments (Brexit, US data, US & AU elections)”.

“Attractive NZ interest rate differentials and a strong NZ economy should continue to entice capital flows into the NZD”.

“Against that, lingering geopolitical uncertainty should cap the upside at 0.7300”.