NZD/USD followed the equities roller coaster and has made a recovery after nearing the 0.6370 key support and is now trading at 0.6474. Kiwi’s fate is tied to equities performance, according to economists at ANZ Bank.
Key quotes
“Kiwi hit its overnight low just above key support at 0.6370 almost to the minute as S&P500 futures hit their low, and has been in recovery mode ever since they turned, putting on almost 100bps. Again it’s all about equities – where they go Kiwi will blindly follow.”
“The overall liquidity environment remains supportive of risk currencies like the NZD, and New Zealand’s unique success in stamping out COVID-19 puts it in good stead too. But let’s not get too excited, there are major challenges down the track, leaving us broadly neutral at these levels.”
“Support 0.6370 Resistance 0.6500”
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