NZD/USD: Potential to break below 0.5950 – Westpac

Pandemic-related events are moving rapidly but the backdrop is likely to remain a negative one for the NZD/USD, in the opinion of analysts at Westpac Institutional Bank. NZD/USD is trading at 0.604.

Key quotes

“Today’s emergency OCR cut (-75bp to 0.25%) plus the signal that the next policy response, if needed, would be QE via NZGB purchases, was shock and awe stuff.”

“NZD/USD remains vulnerable to falling below 0.6000 as near-term economic outlooks are revised even lower.”

“We see potential for NZD/USD to break below 0.5950 to the 0.5800 area.”