NZD/USD: some undershoot of fair value range is likely - ANZ

Analysts at ANZ explained that the NZD/USD is now sitting below the bottom of their short-term fair value range, but said some undershoot is likely.

Key Quotes:

"We revise our end-of-year NZD/USD forecasts to 0.62 (from 0.67) and see it at 0.61 over 2019. If growth continues to deteriorate and the market begins to embrace greater odds of a rate cut, the NZD/USD will be pressured even more. This takes our end-2018 and end-2019 forecasts for AUD/NZD (NZD/AUD) to 1.13 (0.89) and 1.15 (0.87) respectively."