Following a brief dip during the past few days, NZD/USD retains upward momentum for the week ahead, targeting 0.6925, helped by NZ commodity price outlook, economists at Westpac report.

NZ’s key product, whole milk powder, should have further to run

“NZD/USD retains upward momentum and is poised to test 0.6875 and then 0.6925 during the week ahead.”

“While geopolitical risks will restrain the NZD during the weeks ahead, by year-end we target 0.7100+.”

“The global commodity inflation surge is a major source of support. Energy and metal commodities have attracted much attention, but agricultural commodities have also been strong. NZ’s key product – whole milk powder – has risen around 25% this year, and should have further to run.”