Election polls are affecting the NZD - Westpac

Although NZD/USD has enjoyed a 2 cent rally in September, it remains below fair value estimates, suggests Imre Speizer, Research Analyst at Westpac.

Key Quotes

“As recently as 15 August it was trading at fair value, but since then it has diverged lower. That coincides with NZ election polls showing the race will be much closer than was previously expected.”

“A reaction on Monday is likely, with recent reactions to polls the best indicator of direction (NZD has fallen on Labour gains and risen on National gains in polls).”