Economists at Westpac remain bearish, targeting 0.6600 on the NZD/USD pair. The next major NZ event is Q4 CPI on January 27.

Annual NZ CPI inflation in Q4 could set a multi-decade high

“NZD/USD looks bearish near-term. The rise since mid-December looks corrective, and we are watching for a potential break of 0.6755 to signal a larger decline to 0.6600.”

“NZ CPI Q4 data estimates are skewed to the upside, and could show annual inflation was the highest since 1990 if it beats 5.3%. That would lift NZD/USD.” 

“Ahead of NZ CPI, the FOMC announcement could reveal another hawkish shift, depressing NZD/USD.”