NZD/USD to return to the high road after seeing profit taking above 0.67 – ANZ
|Kiwi is trading flat this morning after drifting off yesterday high above 0.67, with gold and other assets also taking a breather. Nonetheless, despite daily volatility, the NZD/USD pair is set to continue rising due to US issues such as the spread of coronavirus in the American country or the dovish Fed stance expectations, economists at ANZ Bank reports.
Key quotes
“Daily volatility aside, the USD remains unloved and with a very dovish tone likely to emerge from the FOMC meeting, it’s difficult to see that changing.”
“The Fed’s monetary policy framework review isn’t due till later, but most expect the Fed to target higher inflation, which means easier policy for longer, and further USD debasement.”
“A lack of success in containing the virus and fiscal disagreement isn’t helping the USD; meanwhile New Zealand is open for business, albeit with deep scars. The easier road is the high road, even if it’s mostly a USD story.”
“Support 0.6450 Resistance 0.6755”
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