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The Kiwi is consolidating around 0.70, with US markets closed or partially closed for Thanksgiving, the news-flow has been light. Economists at ANZ Bank expect to see the US dollar weakening and with the good internal position of the New Zealand’s economy, the NZD/USD pair faces resistance at 0.7050.

Key quotes

“US markets are closed for Thanksgiving and the news-flow has been light. But the virus situation continues to worsen, with the global case count topping 60 million and record daily cases seen in California and Texas.” 

“While there is light at the end of the proverbial tunnel given vaccine success, the near-term situation speaks to more Fed action, and in addition, the Fed’s new average inflation targeting framework suggests it will be a laggard in withdrawing policy accommodation, which in turn speaks to further USD weakness.” 

“Of course, NZ is well placed domestically to bridge the gap to a vaccine.”

“Support 0.6970/0.6997 – Resistance 0.7050/0.7154”