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USD weakness was the clear overnight theme but looks to be on borrowed time. Analysts at ANZ Research expect NZD rallies to be capped. NZD/USD is trading at 0.634.

Key quotes

“NZD/USD held steady around 0.63 overnight as the USD headed south on its own COVID-19 journey. Recent USD weakness is justified given the rapid fall in rates there, but NZ has some catching up to do on that front.”

“We see the terminal OCR settling below the terminal FF rate; markets are pricing it the other way around. The NZD is also the main shock absorber in an adverse global scenario.”

“Support 0.6220 Resistance 0.6360”