The NZD/USD pair is back to where it was a few days ago, having lifted itself off the psychological 0.70 level on Thursday and gradually regained its composure as the market re-thinks USD exceptionalism; this is now being viewed as better for cyclical currencies than the USD, according to economists at ANZ Bank.
The kiwi is regaining its composure
“It has been an odd week, with US bond yields threatening to break out of their uptrend despite bumper data outturns and markets re-thinking the USD exceptionalism view.”
“Stronger US growth should benefit all global cyclical assets, including the NZD and Asian currencies, and this appears to be the theme now at play.”
“The local economic picture is good (higher commodity prices, trans-Tasman bubble). Even if it is not exceptional, it should support the NZD more than others during a cyclical risk uplift.”
“Support 0.6703/0.6900 Resistance 0.7100/0.7190″