NZD/USD ended last week just above 0.61, having started on Monday at 0.5925 and climbing above 0.6150 at one point. Now, the kiwi is consolidating around 0.61 and enjoying being bathed in liquidity, analyst at ANZ Bank informs.
Key quotes
“Extraordinary levels of liquidity are the proximate driver, and conceptually, there are arguably as many reasons to be bullish (we’ve beaten COVID-19, commodity prices are holding up, risk appetite has rebounded quickly) as there are to be bearish (tourism was a big piece of the economy and it’s now gone, our yields are lower than the US and Australia’s, negative rates may be coming, risk sentiment could sour at any time).”
“Support 0.5850 Resistance 0.6170”
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