NZD/USD: Breach of 0.6550 to signal a longer bearish move – Westpac

Key support at around 0.6550 held overnight but the kiwi remains vulnerable to a retest, according to economists at Westpac. However, the NZD/USD pair has been fighting back and now trades near its daily high of 0.6624, up 0.6% on the day. 

Key quotes

“Potential to slip to 0.6550 near-term, amid fragile risk sentiment pre-US election, with a break below that warning of a longer bearish move.” 

Multi-month, though, we expect risk sentiment to remain elevated into year-end, supported by unprecedented global central bank and government stimulus, and the USD to resume its weakening trend. That should see NZD/USD above 0.67 by year end.”