NZD/USD: Beating Delta is the key to see a bright future for the kiwi – ANZ

The kiwi is holding steady near the year’s lows in the low 0.68s. Long-term there is a lot to be optimistic about but near-term there could be more bad news to digest, according to economists at ANZ Bank.

A lot depends on how long the lockdown will last for

“Our sentiments remain the same – longer term we are optimistic, but that’s conditional on beating Delta, and there could well be more bad news to digest over the coming few days and weeks. So it’s a delicate balance.” 

“The path of the economy really does depend on Delta. As optimistic as one can be (given NZ went hard, early), markets will still take things one day at a time, especially given what they have seen in Australia, which tends to colour views on the NZD.”