NZD/USD has the August high at 0.6450 in its crosshairs – ANZ
|The Kiwi ended the week on a high, closing above 0.64, a level not seen since August. Economists at ANZ Bank expect the NZD/USD pair to test the 0.6450 mark.
USD could be volatile into next week’s Fed meeting
“We start the week with the USD on its knees despite data suggesting that even if the Fed hike by ‘only’ 50 bps next week (not a small hike; just not a gigantic one!) they may lift their terminal rate projection above 5%. If that occurs, the question we’re pondering is; how will the USD fare? We may be shaping up for an epic battle between the ‘recessionists’ and the ‘rate-watchers’, all of which portends USD volatility.”
“We see NZD fair value at ~0.65; that suggests it can maintain its strength, but it may be a bumpy ride.”
“The next major technical target is 0.6450 (the Aug high).”
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