NZD/USD: Kiwi to remain supported in a quiet week – ANZ

The kiwi bounced higher as risk sentiment rebounded at the end of a turbulent week. This week may prove to be quieter than the volatility that kicked off July, economists at ANZ Bank report.

Delta variant causing increasing concern

“The path forward for sentiment in the near-term is unclear.”

“The market seems to be reassessing the extent to which the global economic recovery can continue, particularly with the spread of the Delta variant. Nevertheless, the broad story of NZ outperformance and the possibility of earlier OCR hikes should provide support for NZD.”

“Support 0.6900/0.6940 Resistance 0.7100/0.7230”