NZD/USD saw another quiet night, trading around 0.6420, as markets are balancing between a second wave of coronavirus and a rebound fueled by the reopening. Economists at ANZ Bank thinks kiwi’s fair value is 0.65 the risks are slightly skewed to the downside.
Key quotes
“Another night of consolidation (or hesitation and reflection) for the Kiwi as markets weighed up the competing ‘narratives’: virus comeback or re-open/rebound? Which will it be?”
“With the pace of QE now pared back a touch (the BoE the latest to taper) and local GDP data disappointing, it’s not hard to envisage a wayward exploratory journey lower for the Kiwi, especially with new cases here highlighting vulnerabilities.”
“Fair value is 0.65; strategically we’re neutral with risks in both directions, but the scales possibly tipped a tad lower just now.”
“Support 0.6370 Resistance 0.6500”
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