The kiwi was the top performer last week
Currency investors should consider buying NZD/USD, MUFG Research writes in its weekly FX pick.
The firm recommends longs in NZD/USD from stop at 0.7073 with a target of 0.7400 and a stop at 0.6930.
“We are recommending a long NZD/USD trade idea. We have been encouraged by the reassuring comments from the Fed leadership over the past week that have helped to dampen fears over a more abrupt tightening of Fed policy,” MUFG notes.
“The NZD should continue to derive more support as well going forward from building expectations of RBNZ tightening,” MUFG adds.