Quotes from Westpac Research:- NZD/USD 1 day: Probably quiet ahead of the Yellen testimony, in a 0.0.7490-0.7550 range, although the NZ inflation expectations survey could ruffle the NZD.- NZD/USD 1-3 month: This corrective rally (which started on 3 Feb) could extend to 0.7600+ during the next few weeks, as speculative short positions are rebalanced in the wake of the RBNZ’s reaffirmed on-hold stance. Beyond that, we see further downside potential, the next major target being 0.7120. Low inflation and dairy prices, and adversely affected agricultural production are local negatives. However, most important will be whether the US dollar extends its multi-year rally.
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