Near-term strength on the food exports theme is set to go head to head with month-end rebalancing today/tomorrow. Expect volatility on the NZD/USD pair, in the opinion of analysts at ANZ Bank.
Key quotes
“With its very large economy, the US is less impacted by closed borders and a reduction in trade, but its domestic economy and joblessness are the new issues. Meanwhile, the NZD is firming on the ‘food exports’ theme.”
“Better performance by NZ equities normally sees rebalancing away from NZD and into the US, where stocks have underperformed.”
“Support 0.5830 Resistance 0.6050”
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