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The kiwi looks almost unstoppable in the wake of robust Q3 GDP data, further supported by risk appetite and commodity prices. Economists at ANZ Bank expect to New Zealand dollar to remain well-supported over the Christmas period.   

Key quotes

“While we are cautious not to extrapolate the trend (that pace of growth simply isn’t sustainable) that’s a story for later, and for now the market has chalked up the data as yet another positive rebound indicator amid rising commodity prices, broad USD weakness, improving risk appetite and best-in-class fiscal flexibility. 

“We have seen some profit-taking in the last hours as bond yields have spiked higher, weighing on equities, but if we get a US fiscal deal and a Brexit deal before Christmas, there will be nothing stopping Kiwi.”

“Typically, positive seasonality also supports the NZD over the holidays.”

“Support 0.6970/0.6997 – Resistance 0.7171/0.7290”