NZD/USD suffered a turbulent start to the week. The kiwi could drop as low as the 0.6530 in the next few days, economists at Westpac report.

Scope for 0.70 in the second half of the year

“The multi-week decline remains in progress, with potential to reach 0.6530 during the week ahead.”

“The USD is likely to remain strong into the 4 May FOMC, and yields spreads (for longer maturities) are likely to be a headwind for the NZD near-term (in the wake of the RBNZ’s ‘dovish hike’).” 

“Multi-month, we remain bullish NZD, with potential for 0.70 in H2 as the strong commodity price trend starts to dominate again.”