NZD/USD: Technical outlook improves after breaking six-week downtrend channel – ANZ
|NZD/USD is back up around 0.64. Markets remain very volatile but having broken out its six-week downtrend channel, the kiwi has improved its technical picture, economists at ANZ Bank report.
Markets debate odds of a hard landing in New Zealand
“Market sentiment is extremely fragile and convoluted at the moment – while there is an acknowledgment that rate hikes are needed, that has naturally stoked fears of a hard landing/slower growth, and bond markets are wavering, as is the USD, which has broadly tracked bond yields.”
“Next week’s MPS will be key for the NZD as markets debate odds of a hard landing here too. There’s a lot priced in locally, and if some of that is priced out, it’ll lower interest rates, but it’ll also lessen the perceived odds of a hard landing, so it’s complicated.”
“Technically, the NZD has broken out of its six-week downtrend channel; that’s positive.”
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