NZD/USD to consolidate as the US dollar rebound takes a breather – ANZ

NZD/USD has bounced off lows as USD strength takes a breather and the market consolidates after retracing almost 3 cents off last Friday night’s high. The pair is trading around 0.6575, up 0.5% on the day, but economists at ANZ Bank watch out several headwinds that the kiwi is facing.

Key quotes

“With no local data today, consolidation is likely to be the name of the game.”

“Kiwi does face challenges on the monetary policy front and as bond yields go lower we are likely to see more investor allocation out of the local market.”

“We are also mindful of other risks on the horizon – like the US elections and clear signs that COVID-19 isn’t under control globally – which are resulting in some caution on the risk appetite front.”

“Support 0.6490/0.6500 Resistance 0.6690”