The decline in NZ-US interest rate spreads into negative territory for the first time since 1999 has been ignored by NZD/USD, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“This is not unique to the NZD, with most major currencies also disconnecting from yield spreads with the US.”

“The persistent theme driving NZD/USD during the past few months has been a declining US dollar. Until that USD trend is arrested, NZD/USD will remain bid. We target the 0.7400-0.7500 area during the week ahead.”