Quotes from Westpac Research:
- NZD/USD 1 day: The downside is vulnerable, we target 0.7420. The currency market has deemed the RBNZ inflation report more dovish for monetary policy than the interest rate market which hardly reacted to it.
- NZD/USD 1-3 month: This corrective rally which started on 3 Feb and reached 0.7573 is running out of steam. Multi-month, we see further downside potential, the next major target being 0.7120. Low inflation and adversely affected agricultural production are local negatives. However, most important will be whether the US dollar extends its multi-year rally.
