FXStreet reports that economists at Westpac apprise that global sentiment rolling over, and the RBNZ’s dovish hints on the OCR yesterday, will weigh on the NZD during the week ahead.

“NZD/USD is testing the lower bound of a two-month-old channel. Should it break, a multi-week target of 0.5800 would be signalled.”

“The RBNZ MPS was negative for the NZD. The RBNZ’s openness to a negative OCR if needed in future, has caused markets to price a 50% chance of that happening by mid-2021.”

“Today’s Budget revealed the Treasury expects net core crown debt to rise to 54% of GDP by 2023 – slightly higher than the 50% we had expected. The NZD reaction to the announcement was negligible, but if anything, it’s slightly supportive.”

“We remain bearish the NZD for the week ahead.”