NZDUSD remains in a neatly defined uptrend channel – ANZ

The Kiwi is another notch higher. Economists at ANZ Bank expect NZDUSD to extend its rally.

USD Index still seen as about 15% overvalued

“Since the end of Q2 markets have been gravitating to the view that the USD’s days of exceptionalism and dominance were coming to an end, but softer US price data has been the proverbial nail in the coffin for the USD bulls, as it has opened the door to a Fed pivot.” 

“There could be some bumps in the road, but in terms of potential, we see the USD DXY as still about 15% overvalued, so things could run a long way.” 

“Encouragingly, NZD/USD also remains in a neatly defined uptrend channel (that began around 4 weeks ago).”

“Support 0.5875/0.6000 Resistance 0.6235/0.6470/0.6575”