The Kiwi is under pressure as the Fed rebuffs negative rates and the RBNZ embraces them. Economists at ANZ Bank expect further downside.
Key quotes
“US Fed Chair Powell said negative rates were not being considered, which puts the US on a different path to NZ.”
“The RBNZ has adopted a ‘least regret’ approach, suggesting it might even purchase foreign assets and that will weigh on the NZD long-term. And New Zealand needs a lower NZD if it is to make an export-led recovery.”
“Support 0.5850 Resistance 0.6170”
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