NZD/USD to target during the week ahead fueled by record high NZ commodity prices – Westpac

NZD/USD has performed well over the past month. According to economists at Westpac, the kiwi retains upward momentum for the week ahead, targeting 0.69.

NZ commodity prices are at record highs

“Last week, the RBNZ surpassed already hawkish expectations, by significantly raising its projected peak OCR, and by announcing QT would start in July. The RBNZ is concerned inflation expectations could rise even further and become entrenched.”

“The NZ trade-weighted commodity price basket has accelerated over the past month and is at a record high. The Ukraine war presents additional upside risks.”

“We target 0.69 during the week ahead, but remain cautious around the 11 March US CPI data and the 17 March FOMC, both of which could boost the USD.”