Kiwi is lower this morning, mostly courtesy of USD strength and cautious risk appetite, with equities also down, but bond yields volatile rather than higher or lower. Economists at ANZ Bank expect the NZD/USD pair balance around the 0.65 neighborhood in the coming months.
Key quotes
“The softer AUD over the past 24hrs hasn’t helped, with RBA Governor Lowe mulling buying longer-dated bonds, which has seen AUD long end bond yields fall, and NZD bonds follow suit.”
“We expect the NZD to continue to gyrate around our 0.65 forecast for the next few quarters, with cross-currents aplenty.”
“Support 0.6500/0.6510 – Resistance 0.6690/0.6800”
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