CIBC Research discusses NZD / USD outlook and likes long exposure around current levels.
“Our forecast for NZD / USD was then, and now for spot to reach 0.7450 at end-2Q. The rally to that point in late February was thus ahead of expected timing,” CIBC notes
We still expect strength to occur. The basis for our positive view is underlined by a strong rebound in domestic activity, that in turn has been and will now remain supported by accommodative monetary and fiscal policy. Considering that, the current pullback to around 0.7000 allows entry to bullish trades, at levels we believe offer attractive risk reward. We recommend an 0.7150 / 0.7400 3-month NZD / USD call spread, “CIBC adds.
