The Kiwi is flying, up 0.2% on the day to 0.6655, after breaking convincingly through 0.66 for the first time since the COVID-19 crisis. In the opinion of economists at ANZ Bank it is difficult to see momentum cooling down, therefore, they look for the 0.6755 resistance.
Key quotes
“The Kiwi made a clean break through 0.66 for the first time since the COVID-19 crisis. The move was fuelled mostly by global factors (equity rally, USD weakness, growing vaccine optimism), but with a local flavour too, with higher WMP prices giving it a boost.”
“Minor corrections aside, it’s difficult to see the momentum subsiding, even though markets seem to be ‘priced for perfection’, suggesting a degree of fragility. Consider, for example, what may happen if vaccine hopes are dashed, or geopolitical tensions flare up. But for now, it’s ‘all go’ for the Kiwi.”
“Support 0.6450 Resistance 0.6755”
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