NZD/USD: RBNZ’s tone should underpin the kiwi – ANZ

FXStreet Insights Team FXStreet

NZD/USD sports a 0.64 handle for the first time since early June. Economists at ANZ expect the kiwi to receive further support from the Reserve Bank of New Zealand (RBNZ) next week.

A hawkish MPS next week

“US CPI data show that inflation may have peaked, and markets certainly interpreted it that way, with decent rallies seen in equities and other risk assets. Bond markets reacted more cautiously, with US bond yields having unwound most of their knee-jerk move lower. That leaves us a tad cautious, anticipating potential volatility.”

“The RBNZ MPS next week we think it will be hawkish, and even if some of the dent is taken out of the USD in coming days, the RBNZ’s tone should help the NZD.”

“Support 0.6060/0.6290 Resistance 0.6435/0.6575/0.6660”

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FXStreet Insights Team

FXStreet

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