- NZD/USD struggles to stay bid as risk-off kicked into the NY closing hour.
- Plenty of cross-currents to weigh the kiwi down.
NZD/USD is currently trading at 0.6606 between a low of 0.6601 and a high of 0.6646 as early Asia approaches to pick up from a risk-off twist in the New York session.
The USD has collected a late shift bid as the market flipped to risk-off due to the news of the lack of progress in stimulus talks. The high beta currencies, such as the kiwi have taken a knock.
House Speaker Nancy Pelosi said Sunday that in order to push through an agreement before the election, it would have to be settled on by Tuesday. Still, there has not been any progress on Monday.
At the same time, there are rising coronavirus cases in parts of the United States and about whether US President Donald Trump might end up contesting the election results.
Meanwhile, closer to home, 'with the local election uncertainty out of the way, the focus returns to monetary and fiscal policy,'' analysts at ANZ Bank explained.
''With a lot of easing now priced in, house prices on the move and the general mood reasonably upbeat (some might even say there’s a whiff of 2007 in the air), it’s difficult to be bearish the NZD, particularly given NZ’s fiscal flexibility,'' the analysts argued.
''But will folks be so upbeat at the end of summer without inbound tourism? And what of US politics? The point – things feel okay, but there are still plenty of cross-currents out there and we remain comfortable with our forecast of 0.65 +/- a little bit. ''
NZD/USD levels
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