NZD/USD: gains on weaker dollar - ANZ

Analysts at ANZ explained that the NZD gained with Asian FX as the USD weakened overnight. 

Key Quotes:

"Views on USD direction remained mixed and seem to very much depend on the perceived policy mix Donald Trump’s new administration will be able to implement. A “very major” border tax should theoretically be USD positive by encouraging more exports and less imports, but this is complicated by the USD’s reserve currency status and associated other functions (i.e funding, transactional etc) it provides for global commerce."

"It also depends on other policies that will be implemented alongside it – it may well make exporting more attractive, but market access could be reduced when renegotiating trade agreements. More higher paying jobs could well open up, but what about the adjustment of tradable prices with the new tax and its hit to purchasing power for lower income households (assuming a higher USD doesn’t compensate). 

RATES: Will open lower and the curve will flatten following global moves."