The long-awaited unwind of extremely long speculative NZD/USD positioning has further to run, but watch out for a possible temporary boost from the RBNZ this week. Momentum remains negative as speculative longs continue to abandon the NZD. We expect the unwind has further to run but the RBNZ meeting this week could deliver a markethawkish outcome and boost the NZD on the day. A brief bounce to around 0.8000 is possible.
Read the full report: FX Research
Westpac