NZD/USD is drifting like a cork in the tide – ANZ
NZD/USD is a tad higher. Economists at ANZ Bank expect the pair to remain at the mercy of external forces until the Reserve Bank of New Zealand (RBNZ) meeting next week.
Nothing local is really driving the kiwi at the moment
“Nothing local is really driving the kiwi at the moment, and instead it’s drifting like a cork in the tide. That’s unlikely to change today either, but next week’s RBNZ MPR may provide a degree of support, especially if the RBNZ remain hawkish, which is appropriate given the inflation backdrop. But until then, the NZD is at the mercy of global forces.”
“The pull-back in the USD DXY looks a bit odd against geopolitical developments in Ukraine, given the strength of US jobless claims (pointing to bumper payrolls next week), hawkish Fedspeak, and the very real cracks in the UK that can’t be papered over.”
“Support 0.4895/0.5470/0.5565 Resistance 0.6160/0.6400.”