The kiwi recovered on Monday as the USD pulled back and equities rebounded. Nonetheless, it is difficult to see the USD softening much amid hawkish Fed rhetoric, in the opinion of economists at ANZ Bank.
NZD/USD at crossroad short-term
“The kiwi strengthened as risk appetite improved, equities rebound and bond yields rise. While the move was mostly USD-driven and it’s too soon to say whether it’s just a pull-back off highs (for the USD), NZD price action nonetheless looks a little more encouraging.”
“Fedspeak overnight (Bullard) discussed the possibility of the Fed hiking before tapering was complete; while technical, it was more hawkish and if that’s the tone we get for the remainder of the week, it’s hard to see the USD softening too much or US inflation expectations coming back a long way.”
“At a crossroad short-term, but longer term we still expect it to strengthen, fuelled by decent growth and commodity gains.”
“Support 0.6703/0.6800/0.6900 Resistance 0.7100/0.7230”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.