NZD/USD set to suffer a pullback toward 0.6350 – Westpac

NZD/USD has corrected from the mid-0.65s to the mid-0.64s. Economists at Westpac see potential for a pullback to 0.6350.

NZ commodities expected to become a major driver of the kiwi

“NZD/USD could extend lower to 0.6350. If so, we would consider that as a buying opportunity, targeting 0.6700 in Q3 and 0.7000 in Q4.”

“Near-term risk sentiment is fragile, with oil prices approaching demand destruction levels and stagflationary prospects growing. But medium-term, we retain a bullish outlook. The rationale is that Fed pricing should start to stabilise in the latter part of this year, and NZ commodities are expected to become a major driver of the NZD as global food shortages become more acute.”