FX618Analysis
Short

Sell NZD/USD at 0.6705 – Westpac

FX:NZDUSD   New Zealand Dollar / U.S. Dollar
Analysts at Westpac are recommending to sell NZD/USD pair at 0.6705 levels for the target price of 0.6500, while maintaining trailing a stop loss of 0.6800.

Key Quotes

“Rationale:


We expect RBNZ to cut OCR by 25bp to 1.25% on 7 August, and signal potential for more. We expect a follow-up cut in November to 1.0%, with a risk this is delivered in September, and the OCR ultimately falls below 1.0%. Domestic activity is weaker than the RBNZ had forecast.

Markets are pricing 20bp of easing in August, and 42bp by November, implying markets should fall further if our forecasts prove correct.

NZ-US yield spreads have explained much of the NZD’s recent gains, but they should soon become a headwind: markets have priced in plenty for the Fed (100bp) but arguably not enough for the RBNZ.

Technically, NZD/USD’s 3c rise since May looks corrective, and may be giving way to a revisit of May’s 0.6500 low.”



https://www.fxstreet.com/news/sell-nzd-u...

Above is the link to the original article. Shall there be any updates i will post them in the thread below.

INSTANT ENTRY AT AROUND: 0.6700 LEVEL
STOP LOSS: 0.68000
TAKE PROFIT: 0.65000
RR: 1:1.9
TYPE: SHORT

Trade closed: target reached
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