NZD/USD drops 0.19% today after failing to break above 0.66 on Thursday. Nonetheless, economists at ANZ Bank believe the kiwi will break above the 0.6575 level again and are also looking at the AUD/USD pair as if the aussie surpasses the 0.70 mark, NZD/USD will follow the upward move.
Key quotes
“NZD continues to ebb and flow with global risk sentiment, with global rather than local factors in the driving seat.”
“We don’t expect the NZD to carve out its own niche until we see structural changes, which is where the RBNZ’s suggestion that it might start foreign asset purchases comes in, possibly in August. Until then (or something really big locally comes along) we will blindly follow global risk sentiment (aka US equities).”
“The break of 0.6575 lasted less than 24hrs, but looks set to break again. If AUD/USD breaks 0.70 we’ll likely follow suit. That is a key level for the AUD.”
Share
