The kiwi bounced strongly following yesterday’s hawkish RBA tilt. Economists at Westpac expect the NZD/USD pair to retest the 0.7035 mark in the next few days.

Expecting a big RBNZ hike next week

“Expecting a retest of 0.7035 during the next day or two.”

“We see potential for the rally to extend to 0.7200 by June.”

“NZD followed AUD after yesterday’s hawkish RBA surprise, and thoughts will now turn to potential for a hawkish surprise from the RBNZ on 13 April (i.e. a 50bp hike).”