NZD/USD: headed to below 0.65 mid 2016 - Westpac

Imre Speizer, analyst at Westpac Banking Corporation offered a three month outlook for NZD/USD.

Key Quotes:

"We expect NZD/USD to be lower at 0.65 by mid-2016, based on a combination of a 25bp lower OCR and 25bp higher US Fed Funds rate, plus soft NZ commodity prices. However, a persistent rise in global risk sentiment would be an offset.

Moreover, if Fed Chair Yellen is signalling greater caution regarding global developments/ economic disturbance, and if the next Fed move is still 6-9 months away, then it seems entirely possible we will see a period of further strength in NZD/USD."