NZD/USD: Negative bias for the next few months - Westpac

Imre Speizer, Research Analyst at Westpac retains a negative bias for the next few months even after NZD/USD has fallen sharply during the past month, which is a reflection of not only the stronger US dollar, but also an accommodative RBNZ (OCR to remain at its 1.75% record low for the next two years) and, more recently, dairy price weakness.

Key Quotes

“The latest GDT dairy auction was surprisingly weak, with a number of contracts trading limit down (-15%) or not even attracting a bid. A strong finish to this season’s NZ production is clearly weighing on prices. Another weak affair on 21 March would be more fuel for NZD bears.”