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Kiwi remains well bid, as the pair takes the bids near 0.6565, up 0.45% on a day, and continues to dance to the ever-optimistic global beat. Economists at ANZ Bank sets initial resistance at 0.6575, with a final target at the 0.6756 January 1 high. 

Key quotes

“Absent any strong differentiating local factors, Kiwi will continue to dance to a global beat, making the August MPS important. By then, the RBNZ will likely be ready for foreign asset purchases, which would really introduce something NZD-specific for the Kiwi, which while not massively over-valued given how well we have fought the virus and sort of returned to normal, is still a headwind to the recovery.” 

“Regardless, in the short-term, 0.6575 and then the Jan 1st high of 0.6756 are in view.”