NZD/USD: not clear that 0.65 is a more deserving price tag than 0.75 - ANZ

Analysts at ANZ explained that they have mixed feelings on NZD/USD here.

Key Quotes:

"Our forecasts and judgments point to the USD strengthening as the Fed inches closer to balance sheet reduction (note Fed Chair Yellen speaks tonight) and as the liquidity cycle turns, but the US has its own troubles: domestic political uncertainty, North Korea, and the debt ceiling to name a few. 

New Zealand has an election coming up and we’ve seen plenty of surprises on that score, but meanwhile, the economy is trucking along pretty well in the background, soft commodity prices are doing ok and we still have the highest interest rates in the G10. So it’s not clear that 0.65 is a more deserving price tag than 0.75 for the NZD. 

Most likely we continue to range trade, albeit with markets adopting more of a sell on rallies than buy on dips mantra. We’ll see! "