NZD/USD: a bearish picture
The Reserve Bank of New Zealand opened the door to a possible rate cut on Wednesday, while just a month ago it was saying that further tightening was needed.
Analysts at JP Morgan think that the New Zealand’s dollar will remain under pressure as the market will keep repricing the RBNZ rate expectations.
SEB Bank points out that NZD/USD confirmed a large double top and will decline in the medium term. The next target for kiwi is at 0.7125.
According to BNZ, New Zealand’s dollar will survive a sharp decline in the first half of the year before some steadying in the last 6 months of 2015.