NZD/USD: More volatility seems likely – ANZ

The Kiwi has had a volatile start to the year, and with more key US data due this week, more volatility seems likely, according to economists at ANZ Bank.

US CPI to be a key determinant of how big the next Fed rate hike will be

“With little local data this week and many New Zealanders still on holiday, the focus this week will be offshore, with US CPI set to be a key determinant of how big the next Fed rate hike will be.”

“We expect a 25 bps hike but markets are pricing in around 32 bps; so expect ongoing volatility, especially if liquidity remains thin.”

“Support 0.5875/0.6000 Resistance 0.6450/0.6575”