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NZD/USD continues to hover around 0.61 after a quiet US and UK holiday affected season. Analysts at ANZ Bank see some gradual depreciation as risk markets are now priced for perfection, leaving the kiwi vulnerable to a global slowdown.

Key quotes

“We still see depreciation but we have pushed out the timing, mindful that there are powerful short-term drivers at play (liquidity, global reopening, NZ having beaten the virus).”

“We believe a lot of good news is now priced in (just look at equities!) and expect NZD to be under pressure as unemployment rises everywhere and global growth slows.”

“Support 0.5850 Resistance 0.6170”