NZD/USD had a whippy end to the week, closing a touch lower. But, according to economists at ANZ, the kiwi should be a beneficiary of stronger US growth and the global cyclical asset price uplift.
US growth should benefit all global cyclical assets
“The kiwi had a whippy end to the week. Price action in US bonds (and by extension, the USD) was similarly whippy and yields did end higher, but so too did equity indices. Cloudy as that sounds, it is as you’d expect given the better growth picture, and US data has certainly impressed of late. And stronger US growth should benefit all global cyclical assets, including the NZD and Asian currencies, and, this theme appears to be at play.”
“The local economic picture is good (but not exceptional) and at the margin, that should support the NZD more than others during a cyclical risk uplift.”
“Support 0.6703/0.6900 Resistance 0.7100/0.7190″
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