NZD/USD has been correcting lower over the past few weeks. The pair may retest 0.6715 amid its near-term correction, economists at Westpac report.

USD should remain strong ahead of the May FOMC

“The USD is likely to remain strong ahead of the 4 May FOMC, and long-end yield spreads should continue to decline.”

“NZ CPI inflation data slightly disappointed expectations. The 1.8% QoQ and 6.9% YoY results undershot median estimates of 2.0% and 7.1%. And that should be the peak in this cycle. 

“0.6715 could be tested again during the week ahead.”