NZD/USD: The path of least resistance stays higher – ANZ

The Kiwi has come back a touch as risk markets take a breather, but New Zealand’s better ability to withstand short-term pain being felt offshore as the pandemic rages risk the Kiwi going higher, economists at ANZ Bank inform.

Key quotes

“Price action has been muted and we remain in the grip of the ebb and flow of global sentiment.” 

“2021 is going to be pretty tough even with a vaccine (presuming it becomes available later in the year), with more layoffs likely in the US and Europe (some businesses won’t be able to hang on that long), which speaks to more policy action there.” 

“With light now at the end of the tunnel, NZ’s better near-term prospects, and fading market expectations on negative rates, the path of least resistance for the NZD remains higher.”

“Support 0.6805 – Resistance 0.6970”