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The kiwi trades at 0.6580, up 0.06% on a day, after breaking the 0.6575 resistance as USD languishes. According to ANZ Bank’s economists, NZD/USD price action looks bullish and set the next target at the January 1 high of 0.6756.

Key quotes

“The Kiwi is on a real winning streak, rallying on the coat-tails of EUR, GBP and CAD (i.e. generalised USD weakness) as opposed to equity strength. Nonetheless, it’s still a global rather than local story, and 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 equities.” 

“Having broken through resistance at 0.6575, the next technical target is the January 1st high of 0.6756. Wow!”