NZD/USD: Fundamental backdrop is supportive for a test of 0.6750 – Westpac

NZD/USD remains supported by global risk sentiment, weaker USD, relative New Zealand’s economic and COVID outperformance and higher NZ commodity prices. Analysts at Westpac stay biased slightly higher on the kiwi, targeting 0.6750.

Key quotes

“NZD/USD’s break above 0.6600 has been maintained but it hasn’t made much additional headway and thus remains only slightly biased to the upside. Multi-month, though, we remain bullish, targeting 0.6750.” 

“The fundamental backdrop remains supportive: trend decline in the USD, global demand for risky assets, unprecedented fiscal and central bank stimulus, NZ economic (and COVID management) outperformance, and China’s recovery boosting demand for NZ commodities.”