Expect big rally in NZD/USD, if UK votes to remain in the EU - Westpac

Research Team at Westpac, suggests that the UK vote will dominate all other risk events this week and NZ’s calendar will be trivial in comparison.

Key Quotes

“Our base case is the UK votes to remain in the EU, which would trigger a large rally in NZD/USD. We target between 0.7200 and 0.7400 during the next few weeks given such a scenario. Conversely, a leave vote will cause a large selloff to probably below 0.6800. Suffice to say, a volatile week is in store.

Technical: Price action has been more constructive across time frames, however resistance around 0.7150/90 could be difficult to break above.”