NZD/USD Outlook: Up this week
NZD/USD’s positive momentum remains strong and a break above 0.8800 is on the cards during the week ahead. Given the paucity of NZ news expected this week, that will most likely occur either as a result of further US dollar weakness (a disappointing US payrolls report on Thursday, for example) or simply due to further unwinding of short NZD positions. Further ahead, the RBNZ will almost certainly hike by another 25bp on 24 July but the key question is whether or not it will signal a pause at that meeting. If it does, the market may overreact and push interest rates and the NZD lower.
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