NZD/USD to retest recent lows below 0.6200 – CIBC

The New Zealand greenback is dropping floor on a softer financial outlook warn analysts at CIBC. They forecast the NZD/USD pair at 0.62 throughout the third quarter and at 0.61 by year-end. 

Key Quotes: 

“The NZD is dealing with depreciation strain sourced in various components, together with that from broad destructive international threat sentiment. We see pressures persevering with to construct in coming weeks, and anticipate a retest of current NZD/USD lows under 0.6200.”

“Already there was proof of slowing in client and enterprise sentiment, and of a decline in home costs. Challenges to home exercise from sharply larger charges are a destructive that might be exacerbated by weak exercise in China – New Zealand’s largest buying and selling associate, and by the outrun of upper charges and softer outlooks globally. On this atmosphere, larger coverage charges in New Zealand is not going to assist the foreign money past current ranges.”

“A key space of resistance in NZD/USD is between 0.6530 (January low) and 0.6576 (June excessive). Whereas spot is held under this band, threat is for one more take a look at of the draw back.”