NZD/USD in search of a bullish break above 0.7250 – ANZ
|The NZD/USD pair is off Tuesday’s highs but it is still elevated and continues to benefit from better-than-expected data as the USD weakens, economists at ANZ Bank appraise.
Key quotes
“The Kiwi is off Tuesday’s highs seen in the wake of stronger than expected inflation expectations data, but remains lofty as the broad USD DXY index dips further.”
“It isn’t one-way traffic, but with the NZ yield curve now very steep as NZ 10-20yr bond yields widen on a spread to their US and AU counterparts, and the market thematic still that the NZ economy is doing better and the RBNZ will likely be an earlier ‘hiker’, the path of least resistance remains higher – at least before the MPS on 24 February.”
“Briefly topped 0.7250 on Tuesday; a sustained break would be bullish.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.