USD rebounds as a mini risk-on tone takes hold; a coordinated global fiscal response may see that extended, but debt levels are already high. NZD’s tenure on borrowed time will be extended by RBNZ confidence, in the opinion of analysts at ANZ Research.
Key quotes
“NZD/USD is back below 0.63 again this morning, but it’s not because of anything NZ specific; rather it reflects the USD rebound.”
“We remain of the view that the Kiwi will weaken into this global shock, but with the RBNZ outwardly confident time’s on its side, and questioning veracity of cuts at this juncture (ahead of the planned fiscal response), the NZD tenure on borrowed time looks to have gotten an extension.”
“Support 0.6235/0.6250 Resistance 0.6350”
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