The USD remains strong, and yields spreads are likely to weigh on the NZD near-term. Nevertheless, economists at Westpac remain upbeat multi-month, seeing potential for a move above 0.70 in the second half. 

Strong commodity price trend to dominate again in H2

“Expect further weakness during the month ahead, potentially as low as 0.6500, weighed down by further gains in the USD, with the Fed’s May meeting likely to affirm its more hawkish stance.”

“In H2, the Fed story should be fully priced, and commodities will again dominate, pushing the NZD above 0.7000.”