Daily outlook for NZD/USD

Westpac Research notes:

NZD/USD 1 day: Yesterday's large reaction to the RBNZ cut present fresh bearish implications, the next major downside target 0.6950.

NZD/USD 1-3 month:  Multi-month, we expect the US dollar uptrend to resume with stronger US data in Q2 and Q3 and therefore expect NZD/USD to fall, the next major target being 0.6950. However, given the RBNZ's easing mode, we would expect that to give way to successive targets of 0.6800 (July 2010 low) and possibly 0.6560 (May 2010 low) during the months ahead.