NZD/USD slid below the 0.69 mark, opening the door for a correction. Still, economists at Westpac expect the kiwi to enjoy further gains towards the 0.70 level.

Potential to soar above 0.71 by June

“Potential for this minor reversal to reach 0.6875 before resuming the two-month-old rally beyond 0.7000.”

“The commodity price trend remains upward – a powerful source of support for the NZD. 

“Longer-term, we target 0.7100+ by June.”

“The RBNZ clearly has more work to do to claw back inflation expectations, and NZ meat and dairy prices, in particular, have further upside.”