Quotes from Westpac Research:
- NZD/USD 1 day: Looking more constructive in the near term after the Fed's on-hold reiteration. Biased to breaking above 0.7560, any Fonterra payout upgrade would certainly do that but watch out for Australia's CAPEX.
- 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.
