NZD/USD: Kiwi remains one of the market’s preferred ways to fade USD strength – ANZ

NZD/USD dipped back a touch but it looks comfortable in the mid-0.63s. Kiwi remains a preferred anti-USD trade, economists at ANZ Bank report.

US CPI data will be key

“Blong the Kiwi remains one of the market’s preferred ways to fade USD strength as the US rate hike cycle matures, markets press for cuts and the USD loses some of its erstwhile richness to fair value.” “Today’s US CPI data will be key as markets eye an end to the hiking cycle; if that thesis is refuted, there will be volatility.”

“Support 0.5750/0.5900/0.6085 Resistance 0.6365/0.6540”

See – US CPI: Banks Preview, hot inflation still the norm