NZD/USD to find good support at the 0.6688 mark – DBS Bank

NZD/USD has edged lower to a 0.6860 low. Unless the kiwi breaks and sustains losses under 0.6688, this decline is deemed corrective, given the Reserve Bank of New Zealand (RBNZ) is likely to restart its policy normalisation at its October policy meeting, in the view of Benjamin Wong, Strategist at DBS Bank.

Looking at better support ahead

“There is nothing to suggest that the RBNZ would not switch back to 50 bps in hikes as it normalises policy (to a likely 2% by 2023).” 

“A Fibonacci marker rests at 0.6793, and on the weekly Ichimoku clouds, a sturdy support is pegged at 0.6688.”